1) Black Crown Initiate company reported the following.

Sales: $1,970,000

Cost of Goods Sold: $800,000

Operating Expenses: $425,000

Interest expense included in Operating Expenses: $51,000

Income Taxes: 34% of income before tax

Stockholders' Equity (Average): $18,000,000

1a) Calculate Net Income

Net Income =

1b) Calculate the net profit margin

Net Profit Margin =

1c) Calculate the times interest earned

Times interest earned =

1d) Calculate the return on equity

Return on Equity =

2) All-You-Could-Want Company reports current assets of $6,472, and current liabilities of $2,056. Calculate the current ration and the working capital.

Current Ration =

Working Capital =

3) Presented below is the comparative income statement of Edison Company for 2018 and 2017

Edison Company

Income statement

For the year ended November 30

2018 2017

Sales $188,611 $123,848

Cost of Goods Sold $110,424 $64,407

Gross Profit $78,187 $59,441

Operating Expenses

Administrative Expense $21,184 $10,508

Selling Expense $27,225 $22,419

Total Operating Expenses $48,409 $32,927

Other Income and Expenses

Interest Expense $1,251 $867

Income Before Income Tax $28,527 $25,647

Income Tax $8,558 $7,694

Net Income (Loss) $19,969 $17,953

3a) Calculate the following ratios for both years.

2018 2017

Net Prot Margin:

Time Interest Earned:

3b) In which year does the company have a better performance with respect to the net profit margin calculated in part a?

4) At the beginning of 2018, Percolate Corp. had inventory of $359,000. During the year, it purchased $250,000 worth of raw materials and sold $559,000 worth of inventory. Determine the inventory turnover ratio and the days' sales in inventory.

Days' sales in inventory =

For the inventory turnover ratio, round your answer to 2 decimal places.

Inventory Turnover =

5)

At the end of 2018, accounts receivable amounted to $163,000. At the beginning of the year it was $242,000. Net credit sales for the year amounted to $720,000 and net income was calculated to be $197,000.

Determine the days sales outstanding ratio and the accounts receivable turnover ratio.

Days Sales Outstanding =

Accounts Receivable Turnover =

6) Selected financial data from Lead Company is provided below.

Cash	$83,000
Accounts Receivable	$222,000
Inventory	$255,000
Short-Term Investments	$49,000
Land and Building	$499,000
Current Portion of Long-Term Debt	$39,000
Accounts Payable	$102,000

a) Calculate the quick ratio.

Quick ratio =

b) True or False? A quick ratio of 2.12 shows that the company is likely to meet its short term cash obligations.

7)

Presented below are select figures from the balance sheet of Einstein Company for 2018 and 2017.

Einstein Company Balance Sheet As at August 31
	2018	2017
Total Assets	$284,440	$203,851
Total Liabilities	$111,155	$69,693
Stockholders' Equity	$173,285	$134,158

In 2018, Einstein Company had sales of $567,000 and net income of $48,200. Calculate the ratios for 2018 as indicated below. Round your answers to 2 decimal places. Return on Assets (Percent): Asset Turnover: Debt-to-Equity (Decimal): Debt-to-Total-Assets (Percent):

8)

The following financial statements are taken from the records of Jade Inc.

a) Use horizontal analysis techniques to compare the changes between 2018 and 2017 balance sheet items. Use the negative sign for negative values. Round all percentages to the nearest whole number (i.e. 21.61% should be entered as 22%).

Jade Inc. Balance Sheet As at March 31
	2018	2017	$ Change	% Change
Current Assets
Cash	$337,200	$328,500	$Answer	Answer%
Accounts Receivable	$215,800	$176,500	$Answer	Answer%
Merchandise Inventory	$377,100	$415,200	$Answer	Answer%
Short-Term Investments	$79,200	$94,500	$Answer	Answer%
Total Current Assets	$1,009,300	$1,014,700	$Answer	Answer%
Noncurrent Assets	$415,600	$309,900	$Answer	Answer%
Total Assets	$1,424,900	$1,324,600	$Answer	Answer%
Current Liabilities	$259,600	$225,100	$Answer	Answer%
Long-Term Liabilities	$111,700	$86,100	$Answer	Answer%
Total Liabilities	$371,300	$311,200	$Answer	Answer%
Stockholders Equity	$1,053,600	$1,013,400	$Answer	Answer%
Total Liabilities and Equity	$1,424,900	$1,324,600	$Answer	Answer%

b) Perform a vertical analysis of the income statement for 2018, stating all income statement items as a percentage of net sales.

Jade Inc. Income Statement For the Year Ended March 31
	2018
Sales	$708,000	Answer%
Cost of Goods Sold	$318,600	Answer%
Gross Profit	$389,400	Answer%
Operating Expenses
Administrative Expense	$29,600	Answer%
Selling Expense	$73,800	Answer%
Total Operating Expenses	$103,400	Answer%
Other Income and Expenses
Interest Expense	$16,800	Answer%
Income Before Income Tax	$269,200	Answer%
Income Tax Expense	$80,760	Answer%
Net Income	$188,440	Answer%