5. According to the "Common-Size Analysis," Gross Profit "is ___% in proportion to SIGMA sales for 2004.

to. 59.26%

b. 64.12%

c. 78.68%

d. 100%

e. None of the above

Question 5 De acuerdo al "Common-Size Analysis". el "Gross Profiles__% en proporcion con las ventas de SIGMA para el 2004 2003 2004 (ao base) SIGMA MANUFACTURING COMPANY Cash and Marketable Securities Accounts Receivable Inventories (lower of cost or market) Prepaid Expenses Accumulated Tax Prepayments Balancell Sheet Balance Sheet $75,000 $80,000 1,100,000 1,200,000 170,000 185,000 20.000 18.000 4.500 2.000 ... ...... 1,369,500 1,485,000 Current Assets Fixed Assets at Cost less: Accumulated Depreciation 1.450,000 700.000 1,500,000 750 000 Net Fixed Asset 750,000 750,000 Investments, Long-Term Goodwill 230 200 2,500,000 2 90,500 2.600,000 Total Assets $4,849,700 $5,125,500 Bank Loans and Notes Payab Accounts Payable Accrued Taxes Other Accrued Liabilities $100,000 20,500 40.000 169,000 $140,000 22.000 41,000 1 72.000 Current Liabilities 329,500 375,000 Long-Term Debt 1,000,000 1250,000 Common Stock, $1 par value Additional Paid-in Capital Retained Earnings 250,200 180,000 3,090,000 240.000 160,000 3,100 500 Total Equity 3,520,2003,500,500 Total Liabilities and Net Wort $4,849,700 $5,125,500 Retained Earings 3090000 3,100,500 Total Equity 1 3,520,200 3,500,500 Total Liabilities and Net Worth $4849700 $5,125 500 2004 2003 (ao base) SIGMA MANUFACTURING COMPANY Income statement Incomel statement $2.500.000 1,300.000 Net Sales less: Cost of Goods Sold 1.100.000 1,200.000 1.600000 Gross Profit Selling. General and Administrative Expense Depreciation Interest Expense 300,000 100.000 200,000 450,000 110,000 225.000 Earnings Before Taxes Income Taxes 600,000 50,000 815.000 190,000 550.000 10.000 $540,000 625,000 30,000 $595,000 Earnings After Tax Cash Dividends Increase in Retained Earnings a. 59.26% b. 64.12% c. 78.68% d. 100% e NINGUNA DE LAS ANTERIORES