E18-8 Compute four ratios that measure ability of Legend Data Systems, Inc., to earn profits. The company's
Question:
E18-8 Compute four ratios that measure ability of Legend Data Systems, Inc., to earn profits. The company's comparative income statement follows. LEGEND DATA SYSTEMS, INC. Comparative Income Statement Years Ended December 31, 20X3 and 20X2 20X3 20X2 Net sales....... $178,000 $163,000 Cost of goods sold. 93,000 86.000 Gross profit. 85,000 77,000 Selling and general expenses. 48,000 41,000 Income from operations. 37,000 36,000 Interest expense..... 21,000 10,000 Income before income tax. 16,000 26,000 Income tax expense 4,000 8,000 Net income $ 12,000 $ 18,000 Additional data: 20X3 20X2 Average total assets. $204,000 $191,000 Average common stockholders' equity. $96.000 $89.000 Preferred dividends. $3,000 $3.000 Shares of common stock outstanding. 20.000 20.000 Did the company's operating performance improve or deteriorate during 20X3?
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Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones