Solved

The Following Are the Income Statements and Balance Sheets for Coors

Question 73

Multiple Choice

The following are the income statements and balance sheets for Coors Company: 20X2 Sales (onlycredit sales)  $1,606.0 Less cost of goods sold 1,062.0‾ Gross profit $544.0 Less operating expenses 322.0‾ Operatingincome $222.0 Less other expense: Interest 9.6‾ Income before tax $212.4 Less income tax expense $5.0‾ Net income $127.4\begin{array}{ll}&20X2\\\text { Sales (onlycredit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operatingincome } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & \underline{\$ 5.0} \\\text { Net income } & \$ 127.4\end{array}

 Currentassets: 20X2‾20X1‾ Currentliab: 20X2‾20X1‾ Cash $36$38 Accts payable $98$64 Accts receivable 180144 Wages payable 1816\begin{array}{llllll}\text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\\text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16\end{array} 20X2 Sales (onlycredit sales)  $1,606.0 Less cost of goods sold 1,062.0‾ Gross profit $544.0 Less operating expenses 322.0‾ Operatingincome $222.0 Less other expense: Interest 9.6‾ Income before tax $212.4 Less income tax expense $5.0‾ Net income $127.4\begin{array}{ll}&20X2\\\text { Sales (onlycredit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operatingincome } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & \underline{\$ 5.0} \\\text { Net income } & \$ 127.4\end{array}

 Currentassets: 20X2‾20X1‾ Currentliab: 20X2‾20X1‾ Cash $36$38 Accts payable $98$64 Accts receivable 180144 Wages payable 1816\begin{array}{llllll}\text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\\text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16\end{array} The following are the income statements and balance sheets for Coors Company: \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} 32 \begin{array}{llllll} \text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\ \text { Prep aid rent } & \underline{20} & \underline{24} & \text { Current portion } & &\\ \text { Total current assets }&\$356&\$306&\text { of long-term debt }&30&6\\ \text { Long-term as sets: }&&&\text { Total current }\\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\ \text { Accum. deprec. } & \underline{(200) } & \underline{(180) } & \text { Long-term } & \underline{66} & \underline{92}\\&&&\text { liabilities }\\\text { Total long-term } & \$ 114 & \$ 136 & \text { Total liabilities } & \$ 240 & \$ 182\\\text { assets }\\ \end{array} The return on sales for Coors Company in 20X2 is: A) 13.8% B) 7.9% C) 33.9% D) 23.4% 32  Inventory 120100 Taxes payable 284 Prep aid rent 20‾24‾ Current portion  Total current assets $356$306 of long-term debt 306 Long-term as sets:  Total current  Fixed ass ets $320$316 liabilities $174$90 Accum. deprec. (200) ‾(180) ‾ Long-term 66‾92‾ liabilities  Total long-term $114$136 Total liabilities $240$182 assets \begin{array}{llllll}\text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\\text { Prep aid rent } & \underline{20} & \underline{24} & \text { Current portion } & &\\\text { Total current assets }&\$356&\$306&\text { of long-term debt }&30&6\\\text { Long-term as sets: }&&&\text { Total current }\\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\\text { Accum. deprec. } & \underline{(200) } & \underline{(180) } & \text { Long-term } & \underline{66} & \underline{92}\\&&&\text { liabilities }\\\text { Total long-term } & \$ 114 & \$ 136 & \text { Total liabilities } & \$ 240 & \$ 182\\\text { assets }\\\end{array}

The following are the income statements and balance sheets for Coors Company: \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} 32 \begin{array}{llllll} \text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\ \text { Prep aid rent } & \underline{20} & \underline{24} & \text { Current portion } & &\\ \text { Total current assets }&\$356&\$306&\text { of long-term debt }&30&6\\ \text { Long-term as sets: }&&&\text { Total current }\\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\ \text { Accum. deprec. } & \underline{(200) } & \underline{(180) } & \text { Long-term } & \underline{66} & \underline{92}\\&&&\text { liabilities }\\\text { Total long-term } & \$ 114 & \$ 136 & \text { Total liabilities } & \$ 240 & \$ 182\\\text { assets }\\ \end{array} The return on sales for Coors Company in 20X2 is: A) 13.8% B) 7.9% C) 33.9% D) 23.4% The return on sales for Coors Company in 20X2 is:


A) 13.8%
B) 7.9%
C) 33.9%
D) 23.4%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q68: Listed below are four methods of measuring

Q69: Hamandeggs Company owns a 60% interest in

Q70: Julia Company acquired 80% of the outstanding

Q71: The following information pertains to Barnum

Q72: The following are the income statements

Q74: are investments that the company buys only

Q75: Consolidated statements combine two or more in

Q76: Rock Company acquired 40% of the voting

Q77: The following information pertains to Barnum

Q78: are profitability ratios.
A) Earnings per share and

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents