Prepare complete classified consolidated statement of income

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Reference no: EM131688729

Financial Accounting Assignment Questions

Question 1 - Analyzing and Evaluating Return on Assets from a Security Analyst s Perspective

Papa John's is one of the fastest-growing pizza delivery and carry-out restaurant chains in the country. Presented here are selected income statement and balance sheet amounts (dollars in thousands).

	Current Year	Prior Year
Net Sales	$1,217,882	$1,126,397
Net Income	59,387	55,425
Average shareholders' equity	212,711	246,119
Average total assets	403,162	394,143

Required:

1. Compute ROA for the current and prior years.

2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?

Decrease
Increase

Question 2 - Inferring Stock Issuances and Cash Dividends from Changes in Stockholders' Equity

The following information applies to the questions displayed below.

The Kroger Co. is one of the largest retailers in the United States and also manufactures and processes some of the food for sale in its supermarkets. Kroger reported the following January 31 balances in its statement of stockholders' equity (dollars in millions).

	Current Year	Prior Year
Common stock	$959	$958
Paid-in capital	3,427	3,394
Retained Earnings	8,571	8,225

During the current year, Kroger reported net income of $602.

Required -

1. How much did Kroger declare in dividends for the year?

2. Assume that the only other transaction that affected stockholders' equity during the current year was a single stock issuance. Prepare the journal entry reflecting the stock issuance.

Question 3 - Inferring Income Statement Values

Supply the missing dollar amounts for the current year income statement of NexTech Company for each of the following independent cases.

	Case A	Case B	Case C	Case D	Case E
Sales revenue	$500	$600	$500
Cost of goods sold		150		500	320
Gross margin	375				440
Selling expense		50	80	350	240
Administrative expense	125		70	120	80
Pretax income	200	300		200
Income tax expense		30	20	50	20
Net income	150		50		100

Question 4 - Preparing a Classified (Multiple-Step) Income Statement

Macy's, Inc., operates the two best-known high-end department store chains in North America: Macy's and Bloomingdales. The following data (in millions) were taken from its recent annual report for the year ended February 1:

Cost of sales	$16,725
Federal, state, and local income tax expense	804
Interest expense	390
Interest income	2
Net sales	27,931
Other operating expenses	88
Selling, general, and administrative expenses	8,440

Required: Prepare a complete classified (multiple-step) consolidated statement of income for the company (showing gross margin, operating income, and income before income taxes).

Question 5 - Preparing a Classified (Multiple-Step) Income Statement

Cost of sales	$16,725
Federal, state, and local income tax expense	804
Interest expense	390
Interest income	2
Net sales	27,931
Other operating expenses	88
Selling, general, and administrative expenses	8,440

Required: Prepare a complete classified (multiple-step) consolidated statement of income for the company (showing gross margin, operating income, and income before income taxes).

Reference no: EM131688729

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