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Consider the following companys balance sheet and income statement. Balance Sheet Assets Liabilities and Equity Cash $ 14,000 Accounts payable $ 35,000 Accounts receivable 76,000
Consider the following companys balance sheet and income statement.
Balance Sheet | |||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 14,000 | Accounts payable | $ | 35,000 | ||
Accounts receivable | 76,000 | Notes payable | 29,000 | ||||
Inventory | 57,000 | ||||||
Total current assets | 147,000 | Total current liabilities | 64,000 | ||||
Fixed assets | 85,000 | Long-term debt | 18,000 | ||||
Equity | 150,000 | ||||||
Total assets | $ | 232,000 | Total liabilities and equity | $ | 232,000 | ||
Income Statement | |||
Sales (all on credit) | $ | 320,000 | |
Cost of goods sold | 240,000 | ||
Gross margin | 80,000 | ||
Selling and administrative expenses | 20,000 | ||
Depreciation | 4,000 | ||
EBIT | 56,000 | ||
Interest expense | 6,500 | ||
Earnings before tax | 49,500 | ||
Taxes | 14,850 | ||
Net income | $ | 34,650 | |
For this company, calculate the following: (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
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