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Balance Sheet Year ending Year ending 12/31/2005 12/31/2006 Assets ($ in thousands of dollars) Current Assets Cash $ 2,081 $ 2,540 Marketable Securities 1,625 1,800
Balance Sheet | ||||||||
Year ending | Year ending | |||||||
12/31/2005 | 12/31/2006 | |||||||
Assets | ($ in thousands of dollars) | |||||||
Current Assets | ||||||||
Cash | $ 2,081 | $ 2,540 | ||||||
Marketable Securities | 1,625 | 1,800 | ||||||
Accounts Receivable | 16,850 | 18,320 | ||||||
Inventories | 26,470 | 27,530 | ||||||
Total Current Assets | 47,026 | 50,190 | ||||||
Long-Term Assets | ||||||||
Property & Equipment at cost | 39,500 | 43,100 | ||||||
Less Accumulated Depreciation | 9,500 | 11,400 | ||||||
Net Property & Equipment | 30,000 | 31,700 | ||||||
Total Long-Term Assets | 30,000 | 31,700 | ||||||
TOTAL ASSETS | $ 77,026 | $ 81,890 | ||||||
Liabilities | ||||||||
Current Liabilities | ||||||||
Accounts Payable | $ 8,340 | $ 9,721 | ||||||
Notes Payable @ 10% | 5,635 | 8,500 | ||||||
Taxes Payable | 3,150 | 3,200 | ||||||
Other Current Liabilities | 1,750 | 2,102 | ||||||
Current Portion of Longterm Debt | 2,000 | 2,000 | ||||||
Total Current Liabilities | 20,875 | 25,523 | ||||||
Long-Term Liabilities | ||||||||
Mortgage Bonds @ 9.58% | 24,000 | 22,000 | ||||||
Total Long-Term Liabilities | 24,000 | 22,000 | ||||||
TOTAL LIABILITIES | $ 44,875 | $ 47,523 | ||||||
Equity | ||||||||
Common Stock | $ 13,000 | $ 13,000 | ||||||
Paid in Capital in excess of par value | 10,000 | 10,000 | ||||||
Retained Earnings | 9,151 | 11,367 | ||||||
TOTAL EQUITY | $ 32,151 | $ 34,367 | ||||||
Income Statement | ||||||||
Year ending | ||||||||
12/31/2006 | ||||||||
Revenues | ($ in thousands of dollars) | |||||||
Gross Sales Revenues | $ 116,900 | |||||||
Allowance for Sales Returned | 4,140 | |||||||
Net Sales Revenues | 112,760 | |||||||
TOTAL SALES | 112,760 | |||||||
Expenses | ||||||||
Cost of Goods Sold | 85,300 | |||||||
Gross Profits | 27,460 | |||||||
Operating Expenses: | ||||||||
Selling & Marketing | 6,540 | |||||||
General Administrative | 9,400 | |||||||
Total Operating Expenses | 15,940 | |||||||
Operating Income | 11,520 | |||||||
Interest Expenses: | ||||||||
Interest on Loans | 850 | |||||||
Interest on Mortgage Bonds | 2,310 | |||||||
Total Interest Expenses | 3,160 | |||||||
Earnings Before Taxes | 8,360 | |||||||
Federal & State Taxes @ 40% | 3,344 | |||||||
NET INCOME | 5,016 | |||||||
Requirements :
From the Balance sheet and income statement provided above.
a. Calculate 5 ratios ?
b. Interpret your answers in section a ?
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