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Balance Sheets Balanced Sheet: Beginning Balance Ending Balance Average Balance Assets Cash $ 150,000 $ 125,600 $ 137,800 Accounts receivable $ 180,000 100,000 140,000 Inventory
Balance Sheets | |||
Balanced Sheet: | Beginning Balance | Ending Balance | Average Balance |
Assets | |||
Cash | $ 150,000 | $ 125,600 | $ 137,800 |
Accounts receivable | $ 180,000 | 100,000 | 140,000 |
Inventory | $ 240,000 | 120,000 | 180,000 |
Property, plant & equipment (net) | $ 793,000 | 753,000 | 773,000 |
Other assets | $ 37,000 | 37,000 | 37,000 |
Total assets | $ 1,400,000 | $ 1,135,600 | $ 1,267,800 |
Liabilities & stockholders' equity | |||
Accounts payable | $ 80,000 | 40,000 | $ 60,000 |
Bonds payable | $ 550,000 | 250,000 | 400,000 |
Common stock | $ 410,000 | 410,000 | 410,000 |
Retained earnings | $ 360,000 | 435,600 | 397,800 |
Total liabilities & stocholders' equity | $ 1,400,000 | $ 1,135,600 | $ 1,267,800 |
Edman Company | |||
Income Statement | |||
Sales | $ 2,500,000 | ||
Variable expenses: | |||
Cost of goods sold | 1,600,000 | ||
Variable selling expense | 240,000 | ||
Total variable expenses | 1,840,000 | ||
Contribution margin | 660,000 | ||
Fixed expenses: | |||
Fixed selling expense | 220,000 | ||
Fixed administrative expense | 300,000 | ||
Total fixed expenses | 520,000 | ||
Net operating income | 140,000 | ||
Interest expense (8%) | 32,000 | ||
Net income before tax | 108,000 | ||
Tax expense (30%) | 32,400 | ||
Net income | $ 75,600 |
Give the following information, how do you find the margin, turnover, and return on investment?
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