Use the following selected data from Success Systems' incomestatement for the three months ended March 31, 2014, and from itsMarch 31, 2014, balance sheet to complete the requirements below:computer services revenue, $29,221; net sales (of goods), $18,480;total sales and revenue, $47,701; cost of goods sold, $15,344; netincome, $19,179; quick assets, $88,668; current assets, $96,904;total assets, $123,448; current liabilities, $970; totalliabilities, $970; and total equity, $122,478. Required: 1. Computethe gross margin ratio (both with and without services revenue) andnet profit margin ratio. (Round your answers to 1 decimalplace.)
with service revenue without service revenue gross margin ratio % %
net profit margin ratio %
Use the following selected data from Success Systems' incomestatement for the three months ended March 31, 2014, and from itsMarch 31, 2014, balance sheet to complete the requirements below:computer services revenue, $29,221; net sales (of goods), $18,480;total sales and revenue, $47,701; cost of goods sold, $15,344; netincome, $19,179; quick assets, $88,668; current assets, $96,904;total assets, $123,448; current liabilities, $970; totalliabilities, $970; and total equity, $122,478. Required: 1. Computethe gross margin ratio (both with and without services revenue) andnet profit margin ratio. (Round your answers to 1 decimalplace.)
| with service revenue | without service revenue | |
| gross margin ratio | % | % |
| net profit margin ratio | % |
Related questions
| P14-3 Performratio analysis and evaluate financial position and operatingresults | ||||||||||
| Condensed balance sheet andincome statement data for Landwehr Corporation appear | ||||||||||
| below and on page 644. | ||||||||||
| LANDWEHR CORPORATION | ||||||||||
| Balance Sheets | ||||||||||
| December 31 | ||||||||||
| 2018 | 2017 | 2016 | ||||||||
| Cash | 25,000 | 20,000 | 18,000 | |||||||
| Accounts receivable (net) | 50,000 | 45,000 | 48,000 | |||||||
| Other current assets | 90,000 | 95,000 | 64,000 | |||||||
| Investments | 75,000 | 70,000 | 45,000 | |||||||
| Plant and equipment (net) | 400,000 | 370,000 | 358,000 | |||||||
| 640,000 | 600,000 | 533,000 | ||||||||
| Current liabilities | 75,000 | 80,000 | 70,000 | |||||||
| Long-term debt | 80,000 | 85,000 | 50,000 | |||||||
| Common stock, $10 par | 340,000 | 310,000 | 300,000 | |||||||
| Retained earnings | 145,000 | 125,000 | 113,000 | |||||||
| 640,000 | 600,000 | 533,000 | ||||||||
| LANDWEHR CORPORATION | ||||||||||
| Income Statement | ||||||||||
| For the Years Ended December 31 | ||||||||||
| 2018 | 2017 | |||||||||
| Sales revenue | $740,000 | $700,000 | ||||||||
| Less: Sales returns and allowances | 40,000 | 50,000 | ||||||||
| Net sales | 700,000 | 650,000 | ||||||||
| Cost of goods sold | 420,000 | 400,000 | ||||||||
| Gross profit | 280,000 | 250,000 | ||||||||
| Operating expenses (including income taxes) | 235,000 | 220,000 | ||||||||
| Net income | $45,000 | $30,000 | ||||||||
| Additional information: | ||||||||||
| 1. The market price of Landwehr's common stock was$4.00, $5.00, and $8.00 for | ||||||||||
| 2016, 2017 and 2018,respectively. | ||||||||||
| 2. All dividends are paid in cash. | ||||||||||
| After you have completedP14-3, consider the additional question. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1. | Assume that that the net income for 2017 and theweighted average common shares outstanding changed to $38,000 and31,500 respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Also assume that 2018 net sales and totalliabilities also changed to $680,000 and $160,000 respectively.Show the impact of these changes on | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the Profit Margin, Asset Turnover, Earnings Per share,price-earnings ratio, payout ratio, and debt to assets ratio for2017 and 2018
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected year-end financial statements of Cabot Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2012, were inventory, $51,900; total assets,$179,400; common stock, $105,000; and retained earnings,$52,148.)
| CABOT CORPORATION Income Statement For Year Ended December 31, 2013 | ||
| Sales | $ | 451,600 |
| Costof goods sold | 297,150 | |
| Gross profit | 154,450 | |
| Operating expenses | 99,300 | |
| Interest expense | 4,700 | |
| Income before taxes | 50,450 | |
| Income taxes | 20,323 | |
| Netincome | $ | 30,127 |
| CABOT CORPORATION Balance Sheet December 31, 2013 | ||||||
| Assets | Liabilities and Equity | |||||
| Cash | $ | 20,000 | Accounts payable | $ | 15,500 | |
| Short-term investments | 9,000 | Accrued wages payable | 3,800 | |||
| Accounts receivable, net | 32,800 | Income taxes payable | 4,100 | |||
| Notes receivable (trade)* | 4,500 | Long-term note payable, secured | ||||
| Merchandise inventory | 42,150 | by mortgage on plant assets | 65,400 | |||
| Prepaid expenses | 3,000 | Common stock | 105,000 | |||
| Plant assets, net | 147,300 | Retained earnings | 64,950 | |||
| Total assets | $ | 258,750 | Total liabilities and equity | $ | 258,750 | |
| * These areshort-term notes receivable arising from customer (trade)sales. |
| Required: |
Compute the following: (1) current ratio, (2) acid-test ratio,(3) days' sales uncollected, (4) inventory turnover, (5) days'sales in inventory, (6) debt-to-equity ratio, (7) times interestearned, (8) profit margin ratio, (9) total asset turnover, (10)return on total assets, and (11) return on common stockholders'equity. (Use 365 days a year. Do not round intermediatecalculations.) |
