# accounts data bank

Question # 00003597 Posted By: spqr Updated on: 11/16/2013 08:48 AM Due on: 11/30/2013
Subject Accounting Topic Accounting Tutorials:
Question

Q19. Using the data below prepare a common size income statement?

 (\$ 000) (\$ 000) Sales revenue 30,000 Cost of goods sold 21,000 Gross profit 9,000 operating expenses Selling expenses 3,000 General and admin. expenses 1,800 Lease expenses 200 Depreciation expenses 1,000 Total operating expenses 6,000 Operating profit 3,000 Interest 1,000 EBT 2,000 Tax (40% of EBT) 800 Net profit 1,200

Q20. Use the data given below to calculate the values for the following:

 sales \$40,000,000 Gross Profit Margin 80% Operating Profit Margin 35% Net Profit Margin 8% Return on total assets 16% Return on common equity 20% Total asset turnover 2 Average collection period 62.2 days

Required:

a) Gross profit

b) Cost of goods sold

c) Operating profit

d) Operating expenses

e) Earnings available for common shareholders

f) Total assets

g) Total common stock equity

h) Accounts receivable

It is a 365 days year, assume all sales are on credit basis.

Q21. Euro Designs, Inc., expects sales during 2010 to rise from the 2009 level of \$3.5 million to \$3.9 million. Because of a scheduled large loan payment, the interest expense in 2010 is expected to drop to \$325,000. The firm plans to increase its cash dividend payments during 2010 to \$320,000. The company’s year-end 2009 income statement is below.

 (\$ 000) Sales 3,500 Cost of goods sold 1,925 Gross profit 1,575 operating expenses 420 Operating profit 1,155 Interest 400 EBT 755 Tax (40% of EBT) 302 Net profit 453 Cash Dividend 250 Addition to retained earnings 203

Use the percent-of-sales method to prepare a 2007 pro forma income statement for Euro Designs, Ltd.

Tutorials for this Question
1. ## Solution: accounts data bank

Tutorial # 00003408 Posted By: spqr Posted on: 11/16/2013 09:30 AM
Puchased By: 2
Tutorial Preview
The solution of accounts data bank...
Attachments
621.docx (17.1 KB)

Great! We have found the solution of this question!