Ch18 2

The comparative statements of Grouper Interiors Ltd. are presented as follows:

GROUPER INTERIORS LTD. Income Statement For the Year Ended December 31
		2021		2020
Net sales		$2,141,750		$1,812,500
Cost of goods sold		1,135,000		1,018,500
Gross profit		1,006,750		794,000
Selling and administrative expenses		512,000		481,000
Income from operations		494,750		313,000
Other expenses and losses
Interest expense		13,500		13,000
Income before income taxes		481,250		300,000
Income tax expense		105,775		88,000
Profit		$375,475		$212,000

GROUPER INTERIORS LTD. Balance Sheet December 31
Assets		2021		2020		2019
Current assets
Cash		$80,000		$129,100		$110,600
Accounts receivable		183,200		106,600		103,000
Inventory		216,800		129,000		112,500
Total current assets		480,000		364,700		326,100
Property, plant, and equipment (net)		647,700		601,300		519,300
Total assets		$1,127,700		$966,000		$845,400
Liabilities and Shareholders Equity
Current liabilities
Accounts payable		$291,175		$159,000		$134,400
Income taxes payable		47,000		45,000		43,500
Total current liabilities		338,175		204,000		177,900
Bonds payable		190,000		195,000		200,000
Total liabilities		528,175		399,000		377,900
Shareholders equity
Common shares		280,000		280,000		300,000
Retained earnings		319,525		287,000		167,500
Total shareholders equity		599,525		567,000		467,500
Total liabilities and shareholders equity		$1,127,700		$966,000		$845,400

Additional information:

1.		All sales were on account.
2.		Weighted-average common shares in 2021 were 56,000 and in 2020 were 58,000.

(a)

Calculate the following ratios for 2021 and 2020. (Round earnings per share, current ratio, acid-test ratio and asset turnover answers to 2 decimal places, e.g. 1.83 or 1.83% and all other answers to 1 decimal place, e.g. 1.5 or 1.5%. Use 365 days for calculation.)

				2021			2020
1.		Gross profit margin			%			%
2.		Profit margin			%			%
3.		Earnings per share		$			$
4.		Receivables turnover			times			times
5.		Collection period			days			days
6.		Inventory turnover			times			times
7.		Days sales in inventory			days			days
8.		Return on common shareholders equity			%			%
9.		Return on assets			%			%
10.		Current ratio
11.		Acid-test ratio
12.		Asset turnover			times			times
13.		Debt to total assets			%			%