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2022 2021 Sales revenue $8,200,000 $6,600,000 Cost of goods sold 6,100,000 4,700,000 Gross profit 2,100,000 1,900,000 Expenses: Operating expenses 1,450,000 1,400,000 Depreciation expense 90,000 100,000
2022 2021 Sales revenue $8,200,000 $6,600,000 Cost of goods sold 6,100,000 4,700,000 Gross profit 2,100,000 1,900,000 Expenses: Operating expenses 1,450,000 1,400,000 Depreciation expense 90,000 100,000 Interest expense 25,000 50,000 Income tax expense 95,000 80,000 Total expenses 1,660,000 1,630,000 Net income $440,000 $270,000 Assets 2022 2021 2020 Current assets: Cash $290,000 $218,000 $196,000 Accounts receivable 1,050,000 680,000 880,000 Inventory 919,000 1,250,000 1,100,000 Supplies 80,000 90,000 65,000 Long-term assets: Equipment 1,100,000 1,200,000 (250,000) Less: Accumulated depreciation (440,000) (350,000) (250,000) Total assets $2,999,000 $3,088,000 $2,891,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $50,000 $65,000 $55,000 Interest payable 2,000 4,000 6,000 Income tax payable 38,000 40,000 30,000 Long-term liabilities: Notes payable 200,000 400,000 300,000 Stockholders' equity: Common stock 900,000 900,000 900,000 Retained earnings 1,809,000 1,679,000 1,600,000 Total liabilities and equity $2,999,000 $3,088,000 $2,891,000 Required: Determine the following for 2022 (a) Gross profit ratio: % (b) Return on assets: % (c) Profit margin: % (d) Asset turnover: times
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