Revenue and expense data for Mandell Technologies Co. are as follows:http://east.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignmentsHide? http://east.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignmentsHint(s) a.  Prepare an income statement in comparative form, stating each item for both 2012 and 2011 as a percent of sales. If required, round percentages to one decimal place.MANDELL TECHNOLOGIES CO.Revenue and expense data for Mandell Technologies Co. are as follows:

 

 

 

 

 

Hide ·  Hint(s)  

a.  Prepare an income statement in comparative form, stating each item for both 2012 and 2011 as a percent of sales. If required, round percentages to one decimal place.

 

 

 

 

 

MANDELL TECHNOLOGIES CO.  

  

 

Comparative Income Statement  

  

 

For the Years Ended December 31, 2012 and 2011  

  

 

2012 Amount  

 

2012 Percent  

 

2011 Amount  

 

2011 Percent  

  

 

Sales  

 

$800,000  

 

% 

 

 

$740,000  

 

% 

 

  

 

Cost of Goods Sold  

 

504,000  

 

 

 

 

407,000  

 

 

 

  

 

 

 

 

$ 

 

 

% 

 

 

$ 

 

 

% 

 

  

 

Selling expenses  

 

$ 120,000  

 

% 

 

 

$ 140,600  

 

% 

 

  

 

Administrative expenses  

 

128,000  

 

 

 

 

125,800  

 

 

 

  

 

 

 

 

$ 

 

 

% 

 

 

$ 

 

 

% 

 

  

 

 

 

 

$ 

 

 

% 

 

 

$ 

 

 

% 

 

  

 

Income tax Expense  

 

33600  

 

 

 

 

48100  

 

 

 

  

 

 

 

 

$ 

 

 

% 

 

 

$ 

 

 

%  

 

 

Revenue and expense data for the current calendar year for Shoesmith Electronics Company and for the electronics industry are as follows. The Shoesmith Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages. 

 

 

a.  Prepare a common-sized income statement comparing the results of operations for Shoesmith Electronics Company with the industry average. If required, round percentages to one decimal place.

 

 

 

 

 

SHOESMITH ELECTRONICS COMPANY  

  

 

Common-Sized Income Statement  

  

 

For the Year Ended December 31, 20xx  

  

 

Shoesmith Electronics Company Amount  

 

Shoesmith Electronics Company Percent  

 

Electronics Industry Average  

  

 

Sales  

 

$ 4,200,000  

 

% 

 

 

105.0 %  

  

 

Sales Returns & Allowances  

 

200,000  

 

 

 

 

5.0  

  

 

Net sales  

 

$ 4,000,000  

 

% 

 

 

% 

 

  

 

Cost of Goods Sold  

 

2,120,000  

 

 

 

 

59.0  

  

 

Gross profit  

 

$ 1,880,000  

 

% 

 

 

% 

 

  

 

Selling Expenses  

 

$ 1,160,000  

 

% 

 

 

24.0 %  

  

 

Administrative Expenses  

 

480,000  

 

 

 

 

10.5  

  

 

Total operating expenses  

 

$ 1,640,000  

 

% 

 

 

% 

 

  

 

Operating income  

 

$ 240,000  

 

% 

 

 

% 

 

  

 

Other Income  

 

84,000  

 

 

 

 

2.1  

  

 

$ 324,000  

 

% 

 

 

8.6 %  

  

 

Other Expense  

 

60,000  

 

 

 

 

1.5  

  

 

Income before income tax  

 

$ 264,000  

 

% 

 

 

% 

 

  

 

Income tax  

 

120,000  

 

 

 

 

6.0  

  

 

Net income  

 

$ 144,000  

 

% 

 

 

% 

 

 

 

The following data were taken from the financial statements of Hermes Inc. for December 31, 2012 and 2011:

 

 

The income before income tax was $891,000 and $787,500 for the years 2012 and 2011, respectively.

a.  Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.

 

Dec. 31, 2012:   

Dec. 31, 2011:  

b.  Determine the number of times the bond interest charges are earned during the year for both years. Round to one decimal place.

 

Dec. 31, 2012:   

Dec. 31, 2011:  

The following selected data were taken from the financial statements of Preslar Inc. for December 31, 2012, 2011, and 2010:

 

 

The 2012 net income was $435,750, and the 2011 net income was $453,750. No dividends on common stock were declared between 2010 and 2012.

a.  Determine the rate earned on total assets, the rate earned on stockholders' equity, and the rate earned on common stockholders' equity for the years 2011 and 2012. When required, round to one decimal place. 

 

2012 2011   

Rate earned on total assets: % %   

Rate earned on stockholders' equity: % %   

Rate earned on common stockholders' equity: % %  

The following data were taken from the financial statements of Ares Inc. for the current fiscal year.

 

 

Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $6,250,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.

 

a.  Ratio of fixed assets to long-term liabilities:   

b.  Ratio of liabilities to stockholders' equity:   

c.  Ratio of net sales to assets:   

d.  Rate earned on total assets: %   

e.  Rate earned on stockholders' equity: %   

f.  Rate earned on common stockholders' equity: %  

The following information was taken from the financial statements of Bailey Inc. for December 31 of the current fiscal year:

 

 

The net income was $1,250,000 and the declared dividends on the common stock were $800,000 for the current year. The market price of the common stock is $40 per share.

For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest cent.

 

a.  Earnings per Share: $   

b.  Price-Earnings Ratio:   

c.  Dividends per Share: $   

d.  Dividend Yield: %