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Yoakum Company reported the following information related to inventory and sales:
UnitsUnit Cost
Beginning inventory1,000$20
Purchase No. 17,00022
Purchase No. 22,00023
Sales 7,000 units at $38 per unit.
For questions 2 to 9, compute the following amounts assuming a periodic inventory:
Inventory Costing MethodGross MarginBalance Sheet Inventory
FIFO114,00038,000
LIFO110,00046,000
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Hubbard Company purchased a truck on January 1, 2006 , at a cost of $34,000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4,000.
Required:
Complete the following table:
YearDepreciationDepreciation
Straight-line methodDeclining balance method
200% acceleration rate
20067,50017,000Correct
20077,5006,500
20087,5003,250
20097,5001,625
Discount Toys is a retail toy store. The following are selected figures from their income statement (in millions). Use this table for questions 20 to 31.
200620052004
Sales revenues$11,332$11,862$11,170
Net income$404$279($132)
Average total assets$8,178$8,126$7,931
Average stockholders equity$3,549$3,652$4,026
Compute the following ratios for 2006, 2005 and 2004:
200620052004
(3) Financial leverage28.0442.51-84.62
(4) Return on equity11%8%-3%