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SMG AC 221 Lecture Notes - Lecture 5: Gross Profit, Multiple Choice, Net Income

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pinkmanatee811
30 Sep 2016
School
Boston University
Department
Accounting
Course
SMG AC 221
Professor
Cameron Anderson

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Document Summary

Most detailed info about income & expenses goes on balance sheet. Shareholders" equity: contributed capital, retained earnings, accumulated other comp. inc. ~ wage expense, rent expense, utilities expense, depreciation expense. Financial statements are not all-encompassing when it comes to company transactions" obligations, repayments, and estimated amounts. Solvency, leverage, margin & turnover, returns = different ratios. Least liquid assets appear at top of carrefour"s balance sheet. Solvency ratio (interest payments) interest expense is called finance costs. Operating income: could be recurring operating income or just operating income. Exam format: multiple choice (~5, 25%, longer problem (~75%, lots of partial credit, recording transactions (journal entries, bse, t-accounts, creating financial statements (multi step income statements, classified balance sheets) No drawings of accrual timelines, just know about transactions for financial statements (ie order, delivery, payment examples) Debits must equal credits if you use journal entries. Assets + distributions + expenses = liabilities + contributions + income.

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Related Questions

Total current assets 59,314
Long-term marketable securities 5,989
Property and equipment, net 82,447
Deferred income taxes—non-current 1,315
Other assets, net 3,940
Total assets 153,005
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable 11,046
Accrued compensation and benefits 6,389
Deferred revenue 4,625
Total current liabilities 22,060
Other Liabilities -
Deferred lease credits and other long-term liabilities 3,506
Total liabilities 25,566
Shareholders’ equity
Common stock * 93,246
Accumulated other comprehensive loss, net of tax (15)
Retained earnings 34,208
Total shareholders’ equity 127,439
Total liabilities and shareholders’ equity 153,005
* Common stock:13,516,000 shares outstanding
PEET’S COFFEE & TEA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
2015
Retail stores 141,377
Specialty sales 69,116
Net revenue 210,493
Cost of sales 98,928
Operating expenses 66,272
General and administrative expenses 20,634
Depreciation and amortization expenses 8,609
Total costs and expenses from operations 194,443
Income from operations 16,050
Interest income 2,458
Interest expense (6,002)
Income before income taxes 12,506
Income tax provision 4,690

Net Income 7,816

Name:
Ratio Formula Peet's Coffee & Tea, Inc.
Current Ratio Current Assets = #DIV/0!
Current Liabilities
Quick Ratio Current Assets - Inventories = #DIV/0!
Current Liabilities
EBITDA Margin EBITDA = #DIV/0!
Sales
Operating Margin Operating Income = #DIV/0!
Sales
Net Profit Margin Net Income = #DIV/0!
Sales
Earnings Per Share Net Income = #DIV/0! Per Share
Avg. Shares Outstanding
Accounts Rec. Days Accounts Receivable = #DIV/0! Days
Avg. Daily Sales
Accounts Payable Days Accounts Payable = #DIV/0! Days
Avg. Daily COGS
Inventory Days Inventory = #DIV/0! Days
Avg. Daily COGS
Times Interest Earned EBITDA = #DIV/0! X
Interest Expense
Hillside,Inc.
BALANCE SHEET INCOME STATEMENT
($ in millions) ($ in millions)
ASSETS LIABILITIES Revenue 28,681.10
Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Cost Of Goods Sold 20,768.80
Accounts Receivable 954.80 Salaries Payable 225.20 Gross Profit 7,912.30
Inventories 3,645.20 Other Current Liabilities 1,118.80
Other Current Assets 116.60 Total Current Liabilities 2,955.20 Operating Expenses:
Total Current Assets 5,166.50 Selling, General & Admin. 5,980.80
Other Liabilities 693.40 Depreciation 307.30
Machinery & Equipment 1,688.90 Operating income 1,624.20
Land 1,129.70 Total Liabilities 3,648.60
Buildings 2,348.40 Interest -
Depreciation (575.60) SHAREHOLDER'S EQUITY Other Expense (Income) (13.10)
Property, Plant & Equip. - Net 4,591.40 Common Stock 828.50 Income Before Taxes 1,637.30
Other Long Term Assets 120.90 Retained Earnings 5,401.70 Income Taxes 618.10
Total Long-Term Assets 4,712.30 Total Shareholder's Equity 6,230.20 Net Income 1,019.20
Total Assets 9,878.80 Total Liabilities & Equity 9,878.80
Number of Common Stock
Shares Outstanding 1,032,271
Input Answers Below Financial Performance Summary
LIQUIDITY RATIOS
Current Ratio (times)
Quick Ratio (times)
Average Payment Period (days)
ASSET MANAGEMENT RATIOS
Total Asset Turnover (times)
Average Collection Period (days)
Inventory Turnover (times)
FINANCIAL LEVERAGE RATIOS
Total Debt to Total Assets
Equity Multiplier (times)
PROFITABILITY RATIOS
Operating Profit Margin
Net Profit Margin
Return on Total Assets
Return on Equity
Earnings per Share
Addedlong termdebt of : $3,75,000
Sale of PPE:Accum deprec.= $70,000
Sale of PPE: Sold for: $65,000
Sale of PPE: Cost = $110000 $1,10,000
Other comprehensive income inequity increased , offset in Other current assets $44,000
Used Treasury Stock to buyPPE $54,000
Issued/sold common stock: $8,00,000
Paid dividend of $60,000
No additions to Goodwill
HW Problem Prepare Cash FlowStatement; Indirect Method
Class Company, Inc.
Balance Sheet asof
Assets: 12/31/2xx2 12/31/2xx1
Current Assets: $s $s
Cash 13,54,000 1,93,000
Accounts Receivable 4,50,000 4,18,000
Prepaid Expenses 44,000 19,000
Other Current Assets 55,000 32,000
Total Current Assets: 19,03,000 6,62,000
Plant Property &Equipment 12,00,000 9,70,000
Accumulated Depreciation 5,50,000 4,50,000
Net Plant Property &Equipment 6,50,000 5,20,000
Other Non-Current Assets:
Goodwill 6,10,000 6,10,000
Deferred Loan PlacementCosts 25,000 25,000
Other Non-Current assets 72,000 81,000
Total Other Non-CurrentAssets 7,07,000 7,16,000
Total Assets 32,60,000 18,98,000
Liabilities:
Current Liabilities
Accounts Payable 1,29,000 1,39,000
Accrued Expenses 60,000 72,000
Current Portion of LTdebt 90,000 1,00,000
Other Current Liabilities 40,000 30,000
Total Current Liabilities 3,19,000 3,41,000
Non-Current Liabilities
Long Term Debt 11,00,000 9,15,000
Deferred Income Taxes 1,05,000 86,000
Other Non-currentLiabilities 14,000 12,000
Total Non-CurrentLiabilities 12,19,000 10,13,000
Total Liabilities 15,38,000 13,54,000
Owners Equity
Paid-in Capital 10,00,000 2,00,000
Treasury Stock 26,000 80,000
Dividends paid [before closingentries] 60,000 0
Other comprehensiveincome 68,000 24,000
Retained Earnings 7,40,000 4,00,000
Total Owners' Equity 17,22,000 5,44,000
Total Liabilities and OwnersEquity 32,60,000 18,98,000
0 0
Class Company, Inc. Statement ofIncome
Period Ending12/31/2xx2
$s $s
Revenue 45,00,000 100.0%
Cost of Goods Sold 23,00,000 51.1%
Gross Profit 22,00,000 48.9%
Operating Expenses:
Total Operating Expenses 17,00,000 24.5%
Operating Income 5,00,000 11.1%
Other Income ( net of(expense)) 60,000 1.3%
Income Before Taxes 5,60,000 12.4%
Provision for IncomeTaxes 2,20,000 4.9%
Net Income 3,40,000 7.6%