HomeworkLib
Question

indings. P 8-5 Day Ko Incorporated presented the following comparative income statements for 2011 and 2010: For the Years End

CHAPTER -Prfity 345 Other relevant financial imformation follows For the Years Ended 2010 2011 Average common shares issued T

Other relevant financial information follows: For the Years Ended 2011 2010 Average common shares issued Total long-term debt

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

A. Net Sales in 2011 increased to $ 1,589,150 from $ 1,294,966 in 2010 (an increase of 22% over 2010), which is a positive reflection.

B. Net earnings have increased marginally from $ 137,110 in 2010 to $ 138,204 2011 (an increase of just 0.79% over 2010 net earnings).

C.

S.No. Ratio Formula Calculation 2011 2011 Calculation 2010 2010
1 Net profit margin Net earnings/Sales *100 138204/1589150 *100 8.70% 137110/1294966 *100 10.59%
2 Return on assets (using ending assets) Net income / End of period assets 138204/1437636 0.10 137110/1182110 0.12
3 Total assets turnover (using ending assets) Net Sales / End of period total assets 1589150/1437636 1.11 1294966/1182110 1.10
4 Du Pont Analysis ROE = Net profit margin * Total Asset turnover * Equity Multiplier 8.70%*1.11*1.77 17.06% 10.59%*1.10*1.64 19.03%
Equity multiplier Total assets / Shareholders' equity 1437636/810292 1.77 1182110/720530 1.64
5 Operating income margin Earnings before int., tax, noncontrolling int. / Net Sales (263762+18768)/1589150 17.78% (271500+11522)/1294966 21.86%
6 Return on Operating assets (using ending assets) Net income/Operating assets 138204/1411686 9.79% 137110/1159666 11.82%
7 Operating asset turnover (using ending assets) Sales/Operating assets 1589150/1411686 1.13 1294966/1159666 1.12
8 DuPont analysis with operating ratios Operating income margin*Operating asset turnover*EM 17.78%*1.13*1.77 35.51% 21.86%*1.12*1.64 40.04%
9 Return on investment (using ending liab. And equity) Net income / (Shareholders' equity + Debt) 138204/(209128+810292) 13.56% 137110/(212702+720530) 14.69%
10 Return on equity (using ending common equity) Net income / Shareholders' equity 138204/810292 17.06% 137110/720530 19.03%

  

D. As can be seen from the above calculations, the profitability of the firm in question has reduced from 2010 to 2011, with net profit margin down from 10.59% to 8.70%, ROA down from 12% to 10%, ROE down from 19.03% to 17.06% (largely on account of lower profit margin). The operating income also represents a downfall from 2010 to 2011.

0 0
Add a comment
Know the answer?
Add Answer to:
indings. P 8-5 Day Ko Incorporated presented the following comparative income statements for 2011 and 2010:...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • P 8-6 Dorex, Inc., presented the following comparative income statements for 2011, 2010, and 2009: For...

    P 8-6 Dorex, Inc., presented the following comparative income statements for 2011, 2010, and 2009: For the Years Ended 2011 2010 2009 Net sales $1,600,000 $1,300,000 $1,200,000 Other income 22,100 21.500 21,000 1,622,100 1,321,500 1.221,000 Gosts and expenses Material and manufacturing costs of products sold sold 740.000 624.000 576,000 Research and development 90,000 78,000 71,400 General and selling 600,000 500,500 465,000 Interest 19,000 18.200 17,040 Other 14,000 13.650 13,800 51.463,000 $1,234,150 31,143,240 For the Years Ended 2011 2010 2009 $159,100...

  • Financial statements for Boston Corporation are presented below. Use for 17-29 Boston Corporation Comparative Balance Sheet...

    Financial statements for Boston Corporation are presented below. Use for 17-29 Boston Corporation Comparative Balance Sheet December 31 Assets 2011 2010 Cash $   120,000 $   110,000 Accounts receivable (net) 135,000 95,000 Inventory 270,000 240,000 Property, plant, and equipment (net)      750,000      800,000 Total assets $1,275,000 $1,245,000 Liabilities and Stockholders' Equity Accounts payable $   172,000 $   208,000 Accrued liabilities 12,000 16,000 Bonds payable, 10 percent 140,000 160,000 Common stock, $10 par (10,000 shares)      500,000      500,000 Retained earnings     ...

  • Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) February 26, 2011 February 27, 2010...

    Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) February 26, 2011 February 27, 2010 February 28, 2009 Revenue 50.272 $ 49,694 $ 45,015 Cost of goods sold 37 611 37,534 34,017 Restructuring charges - cost of goods sold Gross Profit 12,637 12,160 10,998 Selling general and administrative expenses 10.325 9,873 Restructuring charges Goodwill and tradename impairment Operating income 2,235 1,870 Other income (expense) Investment income and other 54 Investment impairment (111) Interest expense (94) Earnings before income tax...

  • The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years...

    The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years Ended December 31 2017 2016 Net sales $1,899,640 $1,759,600 Cost of goods sold 1,067,640 1,015,100 Gross profit 832,000 744,500 Selling and administrative expenses 509,100 488,100 Income from operations 322,900 256,400 Other expenses and losses    Interest expense 24,100 22,100 Income before income taxes 298,800 234,300 Income tax expense 94,100 75,100 Net income $ 204,700 $ 159,200 SHERIDAN COMPANY Balance Sheets December 31 Assets 2017 2016...

  • The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years...

    The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,734,400 $1,610,000 Cost of goods sold 967,000 925,520 Gross profit 767,400 684,480 Selling and administrative expenses 460,000 440,680 Income from operations 307,400 243,800 Other expenses and losses    Interest expense 20,240 18,400 Income before income taxes 287,160 225,400 Income tax expense 86,148 67,620 Net income $ 201,012 $ 157,780 SHERIDAN COMPANY Balance Sheets December 31 Assets 2022 2021...

  • Problem 13-02A The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY Income Statements For...

    Problem 13-02A The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,586,400 $1,470,000 Cost of goods sold 887,000 845,040 Gross profit 699,400 624,960 Selling and administrative expenses 420,000 402,360 Income from operations 279,400 222,600 Other expenses and losses    Interest expense 18,480 16,800 Income before income taxes 260,920 205,800 Income tax expense 78,276 61,740 Net income $ 182,644 $ 144,060 CULLUMBER COMPANY Balance Sheets December 31 Assets...

  • The comparative statements of Sunland Company are presented here. SUNLAND COMPANY Income Statements For the Years...

    The comparative statements of Sunland Company are presented here. SUNLAND COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales Cost of goods sold $2,178,400 $2,030,000 1,207,000 1,187,080 971,400 842,920 Gross profit Selling and administrative expenses 590,000 565,220 Income from operations 381,400 277,700 Other expenses and losses Interest expense 25.960 23,600 Income before income taxes 355,440 254,100 Income tax expense 106,632 76,230 Net income $ 248,808 $177,870 SUNLAND COMPANY Balance Sheets December 31 Assets 2022 2021 Current...

  • The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years...

    The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $1,811,500 $1,752,200 Cost of goods sold 1,008,900 982,000 Gross profit 802.600 770,200 518,600 472,800 284.000 297,400 Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 17,800 13.800 266,200 283,600 80,152 $ 186,048 76,400 $207,200 Netin Wahlberg Company Balance Sheets December 31 Assets 2020 2019...

  • Sandhill Corporation recently filed the following financial statements with the SEC. Sandhill Corporation Income Statement for...

    Sandhill Corporation recently filed the following financial statements with the SEC. Sandhill Corporation Income Statement for the Fiscal Year Ended July 31, 2017 Net sales Cost of products sold Gross profit Selling, general, and administrative expenses Depreciation Operating income (loss) Interest expense Earnings (loss) before income taxes Income taxes Net earnings (loss) $67,377 47,925 $19,452 8,586 975 $9,891 597 $9,294 3,253 $6,041 $5,614 4,983 4,242 9,485 $24,324 Sandhill Corporation Balance Sheet as of July 31, 2017 Assets Liabilities and Stockholders'...

  • The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years...

    The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $1,815,100 $1,745,300 Cost of goods sold 1,011,300 995,000 Gross profit 803,800 750,300 Selling and administrative expenses 517,400 479,000 Income from operations 286,400 271,300 Other expenses and losses    Interest expense 18,800 13,500 Income before income taxes 267,600 257,800 Income tax expense 80,016 77,100 Net income $ 187,584 $ 180,700 Wahlberg Company Balance Sheets December 31 Assets 2020 2019...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT