Jim Lee owns a small business and is evaluating the following: Net sales are $100,000 with a gross margin of 30%, accounts receivable of $20,000, and cost of goods sold of $70,000. How long will Jim have to wait to get paid? What will be the average day's collection?
The net income for Moore Corporation was $1,500,000 and the return on equity was 21. What is the amount of equity to the nearest dollar?
The following are median prices for Web development:
Small project
Medium project
Large project
Sept. 2004
$77,500
$150,000
$405,000
May 2005
113,000
119,500
606,000
May 2006
65,000
125,500
250,000
Complete a trend analysis for each project. Round to the nearest whole percent and use 2004 as the base year.
An Internet magazine contained an article that stated the following: The net income for 2006 was $800,000, and the return on equity was 20. What was the amount of equity to the nearest dollar?
The Saint Paul Pioneer Press reported that Target's earnings topped Wal-Mart's for the quarter. Target reported this year that overall profit rose 15% to $522 million. Sales rose 8.7% to $10.8 billion. (a) How much were Target's profits last year? (b) How much were Target's sales last year?
Net income for Porsche climbed to $80 million for the year ended in July from $27.6 million a year earlier. Sales rose 46% to $2.35 billion. What is the ratio of profit margin to net sales? Round to the nearest hundredth percent?
The Houston Chronicle reported on the profits of Oshman's Sporting Goods. For the fourth quarter, Oshman's reported net income of $7.3 million. That compares with a net income of $1.5 million the same quarter a year earlier. Net sales for the quarter increased 12.5% to $105.4 million. (a) What was Oshman's profit margin on net sales this quarter? (b) What was the percent increase in net income? (c) What were last year's net sales? (d) What was last year's profit margin on net sales? Round to the nearest hundredth percent.
Bowmar Corporation listed on its balance sheet current assets of $13,421, current liabilities of $3,848. The balance sheet showed inventory of $6,416 and prepaid expenses of $368. Calculate Bowmar's (a) current ratio and (b) acid test. Round to the nearest tenth.
The accountant of Roger Company has provided the following balance to Jim Poole, the bookkeeper. Please prepare for Jim, a balance sheet for December 31, 2006.
Building
$40,000
Mortgage note payable
$60,000
Merchandise inventory
14,000
Common stock
40,000
Cash
30,000
Retained earnings
28,000
Land
42,000
Accounts receivable
6,000
Accounts payable
18,000
Salaries payable
6,000
Prepaid rent
20,000
Jane Smay, a financial analyst, researched the following data to analyze Zim Corporation.
Current assets
$19,000
Net sales
$66,000
Accounts receivable
6,200
Total assets
44,000
Current liabilities
28,000
Net income
8,000
Inventory
4,000
Please help Jane prepare (a) current ratio (b) acid test (c) average day's collection, (d) asset turnover and (e) profit margin on sales. Round to the nearest hundredth.
