Current Attempt in ProgressThe comparative statements of Pharoah Company are presented here.Pharoah CompanyIncome StatementsFor the Years Ended December 31Net salesCost of goods soldGross profitSelling and administrative expensesIncome from operationsOther expenses and lossesInterest expenseIncome before income taxesIncome tax expenseNet income2025$2,104,4001,167,000937,400570.000367,40025.080342,320102,696$239,6242024$1,960,0001,146.840813,160546,060267.10022,800244.30073,290$171.010AssetsCurrent assetsCashDebt investments (short-term)Accounts receivable (net)InventoryTotal current assetsPlant assets (net)Total assetsPharoah CompanyBalance SheetsDecember 31Liabilities and Stockholders' Equity.Current liabilitiesAccounts payableIncome taxes payableTotal current liabilitiesBonds payableTotal liabilitiesStockholders' equity2025$68,51484,360134,292143,640430,806739,860$1,170,666$182,40049,590231,990250,800482,7902024$73,18857,000117,192131,670379,050593,142$972,192$165,75647,880213,636228,000441,636 b.C.a. Earnings per shared.All sales were on credit. Net cash provided by operating activities for 2025 was $250,800. Capital expenditures were $155,040, andcash dividends paid were $70,904.e.Compute the following ratios for 2025. (Round Debt to asset ratio and Free cash flow to 0 decimal places, eg. 15 or 15%, Earnings per share,Return on assets, Current ratio and Asset turnover to 2 decimal places, eg. 1.83 or 1.83% and all other answers to 1 decimal place, e.g. 1.8 or1.8%. Use 365 days for calculations.)f.8.Total liabilitiesStockholders' equityCommon stock ($5 par)Retained earningsTotal stockholders' equityTotal liabilities and stockholders' equityj.k.L.All sales were on credit. Net cash provided by operating activities for 2025 was $250,800. Capital expenditures were $155,040, andcash dividends paid were $70,904.Compute the following ratios for 2025. (Round Debt to asset ratio and Free cash flow to O decimal places, eg. 15 or 15% , Earnings per share,Return on assets, Current ratio and Asset turnover to 2 decimal places, eg. 1.83 or 1.83% and all other answers to 1 decimal place, eg. 18 or1.8%. Use 365 days for calculations.)Return on common stockholders' equityReturn on assetsCurrent ratioAccounts receivable turnoverh. Days in inventoryAverage collection periodInventory turnover482,790 441,636330,600 342,000357,276188,556687,876$1,170,666Times interest earnedAsset turnover530,556$972,192Debt to assets ratioFree cash flow%%:1timesdaystimesdaystimestimes%

Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Current Attempt in Progress The comparative statements of Pharoah Company are presented here. Net sales Pharoah Company Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 2025 $2,104,400 1,167,000 937,400 570,000 367,400 25.080 342,320 102.696 $239,624 2024 $1,960,000 1,146.840 813,160 546,060 267.100 22,800 244.300 73,290 $171.010 Assets Current assets Cash Debt investments (short-term) Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Pharoah Company Balance Sheets December 31 Liabilities and Stockholders' Equity. Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity 2025 $68,514 84,360 134,292 143,640 430,806 739,860 $1,170,666 $182,400 49,590 231,990 250,800 482.790 2024 $73,188 57,000 117,192 131,670 379,050 593,142 $972,192 $165,756 47,880 213,636 228,000 441,636

Current Attempt in Progress The comparative statements of Pharoah Company are presented here. Net sales Pharoah Company Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 2025 $2,104,400 1,167,000 937,400 570,000 367,400 25.080 342,320 102.696 $239,624 2024 $1,960,000 1,146.840 813,160 546,060 267.100 22,800 244.300 73,290 $171.010 Assets Current assets Cash Debt investments (short-term) Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Pharoah Company Balance Sheets December 31 Liabilities and Stockholders' Equity. Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity 2025 $68,514 84,360 134,292 143,640 430,806 739,860 $1,170,666 $182,400 49,590 231,990 250,800 482.790 2024 $73,188 57,000 117,192 131,670 379,050 593,142 $972,192 $165,756 47,880 213,636 228,000 441,636

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 48CE

See similar textbooks

Similar questions

The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 3. Prepare a common-size income statement for Year 3 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Comprehensive income Anson Industries, Inc., reported the following information on its 20Y1 income statement: Prepare the following for Anson Industries, Inc.: A. Income statement, including comprehensive income. B. Income statement and a separate statement of comprehensive income.
Jasmine Company provided the following income statements for its first 3 years of operation: Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.)
Scherer Company provided the following income statements for its first 3 years of operation: Refer to the information for Scherer Company on the previous page. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.)
Inventory Analysis Singleton Inc. reported the following information for the current year: Required: Compute Singletons (a) gross profit ratio, (b) inventory turnover ratio, and (c) average days to sell inventory. (Note: Round all answers to two decimal places.)
The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
The comparative statements of Bonita Company are presented here. Net sales Bonita Company Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 2022 $1,811,500 1,008,900 802,600 518,600 284,000 17,800 266,200 80,152 $ 186,048 2021 $1,752,200 982,000 770,200 472,800 297,400 13,800 283,600 76,400 $207,200
The statement of income for Pembina Ltd. is shown below: Sales Cost of goods sold Gross profit PEMBINA LTD. Statement of Income Year Ended December 31 (in millions) Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income 2021 $1,610 908 702 525 177 80 97 25 $72 2020 $1,410 744 PEMBINA LTD. Horizontal Analysis of Statement of Income (% of base-year amount) Year Ended December 31 666 407 259 50 209 52 $157 2019 $1,194 598 596 397 199 40 159 40 $119 Using horizontal analysis, calculate the horizontal percentage of a base-year amount, assuming 2019 is the base year. (Round answers to 1 decimal place, e.g. 5.2%. Enter negative amounts using either a negative sign preceding the number e.g. -45.1% or parentheses e.g. (45.1)%.)
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31. 2020 $ 487,179 $ 373,219 2021 293,282 236,621 193,897 69,179 43,846 113,025 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets 84,347 80,872 52,251 15,042 10,711 $ 65,830 $ 41,540 KORBIN COMPANY Comparative Balance Sheets December 31 Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities. Common stock Other paid-in capital Retained earnings Total liabilities and equity 136,598 51,504 32,843 2021 2020 2019 $ 259,000 165,760 93,240 34,188 21,497 55,685 37,555 7,624 $ 29,931 $ 64,678 116,492 0 $ 43,289 900 106,308 $ 181,170 $ 150,497 $ 26,451 66,000 8,250 80,469 $ 22,424 66,000 8,250 53,823 $ 181,170 $ 150,497 2019 $ 57,867 4,860 61,960 $ 124,687 $ 21,820 48,000 5,333 49,534 $ 124,687
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales. Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments. Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities. 2021 2020 2019 $ 483,981 $ 370,769 $ 257,300 291,357 234,326 164,672 192,624 136,443 92,628 68,725 51,166 43,558 32,628 112,283 83,794 80,341 52,649 14,943 10,793 $ 65,398 $ 41,856 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 2021 S % $ 57,843 0 KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 2021…