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Comprehensive Problem 2 - St of Cash Flows and Ratios Algo C. Ruiz Inc. C. Ruiz Inc. Income Statement Comparative Balance Sheets For years ended
Comprehensive Problem 2 - St of Cash Flows and Ratios Algo
C. Ruiz Inc. | C. Ruiz Inc. | ||||||
Income Statement | Comparative Balance Sheets | ||||||
For years ended December 31, 2017 and 2018 | December 31, 2018 and 2017 | ||||||
2018 | 2017 | Change | |||||
2018 | 2017 | Current assets: | |||||
Sales (all on credit) | $740,000 | $703,000 | Cash | $122,760 | $70,300 | $52,460 | |
Cost of goods sold | (379,000) | (311,000) | Accounts receivable (net) | 34,000 | 28,000 | 6,000 | |
Gross margin | 361,000 | 392,000 | Inventory | 55,000 | 52,000 | 3,000 | |
Prepaid expenses | 2,000 | 4,400 | -2,400 | ||||
Depreciation expense | 36,000 | 51,000 | Other current assets | 2,820 | 4,300 | -1,480 | |
Other operating expenses | 159,000 | 132,000 | Total current assets | 216,580 | 159,000 | 57,580 | |
Total operating expenses | 195,000 | 183,000 | |||||
Operating income | 166,000 | 209,000 | Long-term Investments | 75,000 | 52,000 | 23,000 | |
Other income (expenses) | Plant assets | 302,000 | 253,000 | 49,000 | |||
Interest expense | (5,400) | (4,000) | Less: accumulated depreciation | (76,800) | (51,000) | 25,800 | |
Gain on sale of investments | 7,200 | 5,000 | Total plant assets | 225,200 | 202,000 | 23,200 | |
Loss on sale of plant assets | (4,400) | (5,300) | Total assets | 516,780 | 413,000 | 103,780 | |
Total other income (expenses) | (17,000) | (4,300) | |||||
Current liabilities: | |||||||
Income before income taxes | 163,400 | 204,700 | Accounts payable | $35,300 | $36,000 | $-700 | |
Income taxes expense | (49,020) | (61,410) | Accrued liabilities | 6,000 | 5,000 | 1,000 | |
Net income | $114,380 | $143,290 | Income taxes payable | 4,100 | 15,000 | -10,900 | |
Total current liabilities | 45,400 | 56,000 | -10,600 | ||||
C. Ruiz Inc. | Long term liabilities: | ||||||
Statement of Retained Earnings | Notes Payable | 269,000 | 200,000 | 69,000 | |||
For the year ended December 31, 2018 | Total liabilities | 314,400 | 256,000 | 58,400 | |||
2018 | 2017 | ||||||
Ret. earnings, Jan. 1 | $32,000 | $0 | Stockholders' equity | ||||
Add: net income | 114,380 | 143,290 | Common stock, $5 par value | 100,000 | 100,000 | 0 | |
Deduct: Dividends | (69,000) | (111,290) | Additional paid-in capital | 25,000 | 25,000 | 0 | |
Increase in retained earnings | 45,380 | 32,000 | Retained earnings | 77,380 | 32,000 | 45,380 | |
Ret. earnings, Dec. 31 | $77,380 | $32,000 | Total stockholders equity | 202,380 | 157,000 | 45,380 | |
Total liabilities and stockholders equity | $516,780 | $413,000 | $103,780 | ||||
Other information: | |||||||
Shares of common stock outstanding | 20,000 | 20,000 | |||||
Earnings per share | $5.72 | $7.16 | |||||
Dividends per share | $3.45 | $5.56 | |||||
Market price per share, common stock | $17 | $13 |
Requirement
Prepare a vertical analysis on the partial income statements for 2017 and 2018.
need help with wrong answers please
Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. C. Ruiz Inc. Partial Income Statement (Vertical analysis) For the years ended December 31, 2018 and 2017 2018 % 2017 % Sales $ 100.00% 740,000 379,000 361,000 100.00% $ 703,000 51.00% x 311,000 44.00% 48.00% X 392,000 55.00% Cost of goods sold Gross margin Expenses Depreciation expense 36,000 0.04% X 51,000 0.07% Other operating expenses 159,000 21.00% X 132,000 18.00% 26.00% X 26.00% Total operating expenses Operating income 195,000 166,000 183,000 209,000 $ 22.00% X $ 29.00%
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