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Question
Husain, Inc.s income statement and other financial information for the current year is presented below.
| Hussain, Inc. Income Statement For the year ended December 31 | |
| Sales revenue | $159,131 |
| Cost of goods sold | 64,360 |
| Gross profit | 94,771 |
| Selling, general, and administrative expenses | 11,385 |
| Operating income | 83,386 |
| Interest expense | 2,847 |
| Income before taxes | 80,539 |
| Income tax expense | 3,414 |
| Net income | $ 77,125 |
| Balance sheet information: | |
| Current assets | $250,000 |
| Noncurrent assets | 500,000 |
| Current liabilities | 50,000 |
| Long-term debt | 100,000 |
Required:
Part a. Perform vertical analysis of the income statement. (Round to the nearest whole percentage.)
Part b. Calculate the debt-to-assets ratio. (Round to two decimal places.)
Part c. Calculate the times interest earned ratio. (Round to two decimal places.)
Part d. Evaluate the companys solvency.
Answer
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Related questions
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Use the information above to answer the following question. The company would report net cash provided by (used in) financing activities of:
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B) $2,000.
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D) $6,000.
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$14,500 Net cash provided by investing activities
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Cash flows from financing activities:
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Which of the following represent cash outflows from financing activities?
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Which of the following statements about calculation of cash flows from operating activities under the indirect method is correct?
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D) When a company repays a loan, it reports a cash inflow from financing activities.
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Cash flows from financing activities include all of the following except:
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Which of the following statements about straight-line depreciation is correct?
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Which of the following is not an amount that is needed to calculate straight-line depreciation?
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Q:
Which of the following statements most appropriately describes the purpose of depreciating a long-lived tangible asset?
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Under the cost principle, a company capitalizes:
A) all ordinary repair expenditures incurred in the use of an asset.
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Q:
The following information was summarized from the adjusted trial balance of Reliance Yacht Repair, Inc. as of September 30, 2015, the end of the companys fiscal year. Accounts Payable
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6,000 Accumulated DepreciationEquipment
2,000 Cash
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500 Interest Expense
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2,500 Notes Receivable (short-term)
5,500 Prepaid Rent
500 Retained Earnings
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Part a. Prepare the closing entry for the company for the year ended September 30, 2015.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entry, and then determine the ending balance.
Part c. Prepare a post-closing trial balance at September 30, 2015.
Q:
On December 31, 2016, Ditka Inc. had Retained Earnings of $267,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $168,100 and interest revenue of $81,300. The company used supplies in the amount of $87,900, advertising expenses were $16,400, salaries and wages totaled $18,300, and income tax expense was calculated as $13,700. During the year, the company declared and paid dividends of $6,000.
Required:
Part a. Prepare the closing entries dated December 31, 2016.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entries, and then determine the ending balance.