70.2K

Verified Solution

Link Copied!

please help

Nova Incorporated declared and paid $4,800 of cash dividends during the current year ended December 31. Its financial statemer also reported the following summarized data: Current Previous Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Interest expense Income before income taxes Income tax expense Het income Balance Sheet $ 270,000 146,000 124,000 71,300 4,500 48,200 14,460 5.33.740 $ 237,000 136,000 101,000 64,800 4,400 31,800 4.800 $ 27,000 Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities Totes payable (long-ters) Common stock (par 55) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ 8,940 37,000 53,000 63,000 $ 166,940 $ 17,000 63,000 40,800 8,660 37.540 $ 166,940 $9,500 32,000 53,000 56,000 $ 150,00 $31,600 63,000 40,800 5.80 8,600 $ 150,00 Required: 1. Compute the gross profit percentage for the current and previous years. Are the current year results better of worse than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current year results better, or worse than those for the previous year? 3. Compute the comings per share for the current and it was in the uua yur. 2. Compute the net profit margin for the current and previous years. Are the current-year results better, or worse, than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current-year results better or worse than those for the previous year? TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding Common Stock equals the par value per share times the number of shares. 4. Stockholders equity totaled $40,800 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. Are the current-year results better, or worse than those for the previous year? 5. Net property and equipment totaled $44.000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current-year results better or worse than those for the previous year? 6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 7. Compute the times interest earned ratios for the current and previous years. Are the current year results betteror worse than those for the previous year? 8. After Nova released its current year's financial statements, the company's stock was trading at $48. After the release of its previous year's financial statements, the company's stock price was $36 per share. Compute the P/E ratlos for both years. Does it appear that Investors have become more or less) optimistic about Nova's future success? Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Required 6 Required 5 Required Required 1a. Compute the gross profit percentage for the current and previous years. (Round percentage values to 1 decimal place) 1-b. Are the current year results better, or wome, than those for the previous year? 1- Current Year 1- Previous Year 1. Custot year gross profit percentage is Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 2-a. Compute the net profit margin for the current and previous years. (Round percentage values to 1 decimal place 2-b. Are the current-year results better, or worse, than those for the previous year? % 2-a. Current Year 2-a Previous Year 2.b. Current year net profit margin is % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 3-a. Compute the earnings per share for the current and previous years. TIP: To calculate EPS, use the balance Stock to determine the number of shares outstanding. Common Stock equals the par value per share times the shares. (Round your answers to 2 decimal places.) 3-b. Are the current-year results better, or worse, than those for the previous year? 3-a. Current Year 3-a Previous Year 3-b. Current year EPS is: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 4-a. Stockholders' equity totaled $40,800 at the beginning of the previous year. Compute the return on equity (ROE) the current and previous years. (Round percentage values to 1 decimal place.) 4-b. Are the current-year results better, or worse, than those for the previous year? 4-a Current Year % % 4-a Previous Year 4-b. Current year return on equity ratio is Julistic about Nova's future success? ule Pit ratios for both years. Does i Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 5-a. Net property and equipment totaled $44,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. (Round your answers to 2 decimal places.) 5-b. Are the current-year results better, or worse, than those for the previous year? 5-a. Current Year 5-a Previous Year 5-b. Current year fixed asset turnover is Suc about Nova's future success? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 6-a Current Year 6-a. Previous Year 6-b. Current year debt-to-assets ratio is Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 7-a. Compute the times interest earned ratios for the current and previous years. (Round your answers to 1 decimal place :) 7-b. Are the current-year results better, or worse, than those for the previous year? 7-a Current Year 7-a. Previous Year 7-5. Current year times interest earned ratio is Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 8-a. After Nova released its current year's financial statements, the company's stock was trading at $48. After the release its previous year's financial statements, the company's stock price was $36 per share. Compute the P/E ratios for both year (Round your intermediate calculations to 2 decimal places and final answers to 1 decimal place.) 8-b. Does it appear that investors have become more or less) optimistic about Nova's future success? Show less 8 a. Current Year 8-a Previous Year 8-b Current year P/E ratio is

Answer & Explanation Solved by verified expert

See Answer