113 114 Income Statement: 115 Net Sales $450,000 116 Cost of Goods Sold ($250,000) 117 Operating Expenses ($47,000) 118 Interest Expense ($20,000) 119 Tax Expense 120 Net Income 121 ($18,000) $120,000 122 Comparative Balance Sheet: Prior Company 31-Dec-23 123 2023 2022 2023 2022 124 Cash $10,000 $50,000 Accounts Pay $20,000 $40,000 125 Short Term Invest $25,000 560,000 Short Term Note Payable $60,000 $90,000 126 Accounts Rec $40,000 $30,000 Bonds Payable $70,000 $160,000 127 Inventory $65,000 $90,000 Common Stock $160,000 $160,000 128 Plant assets, net $280,000 129 Total Assets $420,000 130 131 Calculate the following for 2023 and selected for 2022: 132 Retained Earnings Total Liab. & SE $290,000 $520,000 $110,000 $70,000 $420,000 $520,000 Year 2022 Answer Calculations 133 1 134 Current Ratio 140000/80000 135 2 Return on Equity 120000/2700000 136 137 3 138 Quick Ratio 75000/80000 Year 2023 Answer 1.75 Calculations 044 094 139 4 140 Acct Rec. Turnover 4500000/35000 12.36 141 5 Profit Margin 142 1436 Inventory Turnover 120000/450000 100 250000/77500 26.67 3.23 144 145 7. Return on Assets 120000/420000 0.29 146 147 Debt to Assets 150000/420000 0.36 148 149