Pool Corporation is the world’s largest wholesale distributor of swimming pool s
ID: 2499051 • Letter: P
Question
Pool Corporation is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation which trades on the NASDAQ exchange under the symbol POOL. It sells these products to swimming pool repair and service businesses like Penny’s Pool Service & Supply, swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses like Penny’s. Its trial balance and additional information adapted from a recent year ended December 31 are presented below. All numbers are in thousands.
Prepare a classified income statement (with earnings per share) for the current year. Number of shares outstanding used in computation of earnings per share was 48,198. (Enter your answers in thousands. Round "Basic earnings per share" to 2 decimal places.
Prepare a classified balance sheet for the current year. Number of shares outstanding used in computation of earnings per share was 48,198. (Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands.
Compute gross profit percentage and return on assets. Total assets at the beginning of the year was $730,545. (Enter your answers in thousands. Round your answers to 1 decimal place.)
Pool Corporation is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation which trades on the NASDAQ exchange under the symbol POOL. It sells these products to swimming pool repair and service businesses like Penny’s Pool Service & Supply, swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses like Penny’s. Its trial balance and additional information adapted from a recent year ended December 31 are presented below. All numbers are in thousands.
Explanation / Answer
Income Statement
..
Balance Sheet
..
c. Compute gross profit percentage and return on assets. Total assets at the beginning of the year was $730,545
Ans) Gross Profit/Net Sales * 100
= 533,590/1,797,318 * 100
= 29.69%
..
Average Assets = (730545+801,374)/2
= 765,960
..
REturn on Assets = Net Income/Average Assets * 100
= 73,613/765,960 * 100
= 9.61%
Particulars Amount($) Net Sales 1,797,318 Less:-Cost of sales 1,263,728 Gross Profit 533,590 Less:-Other Expenses a)Selling and administrative expenses 406,743 b)Interest expense 7,795 Profit Before Tax 119,052 Less:- Provision for income taxes 45,439 Profit after Tax 73,613 No of Shares Outstanding 48,198 EPS $1.53 per share