question archive 09px;=”” 12px=””>The comparative financial statements prepared at December 31, 2012, for Prince Company showed the following summarized data:
09px;=”” 12px=””>The comparative financial statements prepared at December 31, 2012, for Prince Company showed the following summarized data:
Subject:AccountingPrice: Bought3
09px;=”” 12px=””>The comparative financial statements prepared at December 31, 2012, for Prince Company showed the following summarized data:.09px;=”” 12px=””> 20122011 Income Statement Sales revenue$190,000*$167,000 Cost of goods sold112,000100,000 Gross profit78,00067,000 Operating expenses and interest expense56,00053,000 Pretax income22,00014,000 Income tax8,0004,000 Net income$14,000$10,000 Balance Sheet Cash$4,000$7,000 Accounts receivable (net)14,00018,000 Inventory40,00034,000 Operational assets (net)45,00038,000 $103,000$97,000 Current liabilities (no interest)$16,000$17,000 Long-term liabilities (10% interest)45,00045,000 Common stock (par $5)30,00030,000 Retained earnings12,0005,000 $103,000$97,000 .09px;=”” 12px=””>*One-third was credit sales. 3. value:10.00 points Required information .09px;=”” 12px=””>Required:.09px;=”” 12px=””>1.Present component percentages for 2012 only. (Round your answers to the nearest whole percent amount. Omit the “%” sign in your response.).09px;=”” 12px=””>ComponentPercentages 2012 Income statement: Sales revenue (the base amount) Cost of goods sold Gross profit on sales Operating expenses Pretax income Income taxes Net income Balance sheet: Cash Accounts receivable (net) Inventory Operational assets (net) Total assets (the base amount) (rounded) Current liabilities Long-term liabilities (10% interest) Common stock ($5 par) Retained earnings Total liabilities and owners’ equity (the base amount) (rounded) References eBook & Resources RATIO AND PERCENTAGE ANALYSISTESTS OF PROFITABILITYTESTS OF SOLVENCY 4. value:10.00 points Required information .09px;=”” 12px=””>2.Respond to the following for 2012:.09px;=”” 12px=””>a.What was the average percentage markup on sales? (Omit the “%” sign in your response.).09px;=”” 12px=””> Average percentage markup on sales % .09px;=”” 12px=””>b.What was the average income tax rate? (Round your answer to 1 decimal place. Omit the “%” sign in your response.).09px;=”” 12px=””> Average income tax rate % .09px;=”” 12px=””>c.Compute the profit margin? (Round your answer to 1 decimal place. Omit the “%” sign in your response.).09px;=”” 12px=””> Profit margin (net) % .09px;=”” 12px=””>d.What percentage of total resources was invested in operational assets? (Round your answer to 1 decimal place. Omit the “%” sign in your response.).09px;=”” 12px=””> Investment in operational assets % .09px;=”” 12px=””>e.Compute the debt-to-equity ratio? (Round your answer to 1 decimal place.).09px;=”” 12px=””> Debt-to-equity .09px;=”” 12px=””>f.What was the return on equity? (Round your answer to 2 decimal places. Omit the “%” sign in your response.).09px;=”” 12px=””> Return on equity % .09px;=”” 12px=””>g.What was the return on assets? (Round your answer to 1 decimal place. Omit the “%” sign in your response.).09px;=”” 12px=””> Return on assets % .09px;=”” 12px=””>h.Compute the financial leverage percentage? (Round your answer to 1 decimal place. Omit the “%” sign in your response.).09px;=”” 12px=””> Financial leverage percentage %
