Calculate the missing amounts - profit margin ratio

Assignment Help Cost Accounting
Reference no: EM13550367

Rodriguez Inc. operates a retail operation that purchases and sells home entertainment products. The company purchases all merchandise inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2009 through 2012, inclusive.


2009

2010

2011

2012

Income Statement Data





Sales revenue


$55,000

$ (e)

$47,000

Cost of goods sold


(a)

13,800

14,300

Gross profit


38,300

35,200

(i)

Operating expenses


34,900

(f)

28,600

Net income


$ (b)

$ 2,500

$ (j)

Balance Sheet Data





Inventory

$7,200

$ (c)

$ 8,100

$ (k)

Accounts payable

3,200

3,600

2,500

(l)

Additional Information





Purchases of merchandise





inventory on account


$14,200

$ (g)

$13,200

Cash payments to suppliers


(d)

(h)

13,600

Instructions

(a) Calculate the missing amounts.

(b) Sales declined over the 3-year fiscal period, 2010-2012. Does that mean that profitability necessarily also declined? Explain, computing the gross profit rate and the profit margin ratio for each fiscal year to help support your answer.

Reference no: EM13550367

Questions Cloud

What amount should be reported by ruse inc : What amount should be reported by Ruse Inc. as cash provided by operating activities in the statement of cash flows
Determine the minimum do at any point downstream : The Big Bear town council has asked that you determine whether the discharge of the town's wastewater into the Salmon River will reduce the DO below the state standard of 5.00 mg/L at Little Bear, 5.79 km downstream
How many yards of borrow will be required to complete : An embarkment will be constructed with the soil compacted to 95 percent of the max dry density. the borrow material, is deposited at a uniform density of 75 percent of the max dry density. the roadway embankment will require 75,000 cubic yards of fil..
Neglecting the mass of the pulley and the effect of friction : The 2 blocks are released from rest when r =0.8m and theta=30d. Neglecting the mass of the pulley and the effect of friction in the pulley and between block A and the horizontal surface.
Calculate the missing amounts - profit margin ratio : Sales declined over the 3-year fiscal period, 2010-2012. Does that mean that profitability necessarily also declined? Explain, computing the gross profit rate and the profit margin ratio for each fiscal year to help support your answer.
What is the mass of the astronaut and chair : An astronaut measures her mass by means of a device consisting of a chair attached to a large spring. what is the mass of the astronaut and chair
Estimate the rate of the heat flow through the rod : A copper rod 83.0 cm long and with a diameter of 1.3 cm is used to poke a fire. What is the rate of the heat flow through the rod
What are the estimated cash receipts from accounts : What are the estimated cash receipts from accounts receivable collections in April - Nassau Products is preparing a cash budget for April.
Calculate the maximum velocity object has during its motion : An object of mass 6.8kg is attached to a spring of force constant 1870 N/m. Calculate the maximum velocity the object has during its motion

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd