Continuing Cookie Chronicle 13 The comparative balance sheet of Cookie& Coffee Creations Inc. at October 31, 2018 for the years 2018 and 2017, and the income statements for the years ended October 31, 201 and 2018, are presented below COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31 $22,324 $5,550 3,250 2,710 7,897 7,450 5,800 6,050 102,000 75,500 Cash Accounts receivable Inveetory Prepaid expenses Equipment Accumulated depreciation Total assets Liabilitles and Stockholders' Equity Accounts payable 25,00) (9,100) 116,071 88,160 1150 $2,450 7,200 27,000 27,000 250 ,280 9.251 7, Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Note payable-long-term portion 188 4,000 6,000 AD 1/0/2019 948 PM e https/kidge Principles Kimmel, Financial Accounting, 8e Assignment Gradebook ORION Downloadable eTextbook gnment CALCULATOR FULL SOREEN Liabilities and Stockholders' Equity Accounts payable Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Note payable-long-term portion Preferred stock, no par, $6 cumulative-3,000 and 2,800 shares issued, respectively15,00014,000 Common stock, $1 par-25,180 shares issued Additional paid in capital-treasury stock Retained earnings Total liabilities and stockholders' equity 1,150 $2,450 9,2517,200 27,000 27,000 7,250 1,280 188 4,000 6,000 0 0. 25,180 25,180 250 20,802 10,800 $116,071 $88,160 250 COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2018 2017 Sales Cost of goods sold Gross profit Operating expenses $485,625 $462,500 222,694 208,125 262,931 254,375 Salaries and wages expense 147,979 146,350 Principles of Financial Accounting (AC Kimmel, Financial Accounting, 8e Assignment Gradebook ORION Dowaloadable eTextbook CALCULATOR FULL SCREEN PRINTER VERSION BACK 48,186 42,925 213,765 198,375 49,166 56,000 Other operating expenses Total operating expenses Income from operations Other expenses 413 Interest expense Loss on disposal of plant assets2,500 2,913 Total other expenses Income before income tax Income tax expense Net income 46,25356,000 9,251 14,000 $37,002 42,000 Additional information: Natale and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repald over a 4-year perlod. The terms of the loan prov for equal semi-annual payments of $2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. Calculate the following ratios for 2017 and 2018. (Round current ratio to 2 decimal places, e.g. 12.61, debt to assets and gross profit rate to o decimal places, eo. 1 and all other answers to 1 decimal place, e.g. 1 2.6%.) 2018 2017 1. Current ratio 2. Debt to assets 948 ent CALCULATOR PRINTER VIRSION Cal late the following ratis l 2017 and 2018 (Round current ratio to 2 de mal places, eg. 1 2.61, debt to assets and gross profit rate to O decimal places, 4 12 and all other answers to 1 decimal place, eg. 12.6%.) 1. Current ratio 2. Debt to assets 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2018, were $33,180.) 6. Return on common stockholders' equity (Total common stockholders' equity at November 1, 2018, was $23,180. Dividends on preferred stock were $16,800 in 2017 and $18,000 in 2018) LINK TO TI Prepare a horirontal analysis of the income statement for Cookie&Coffee Creations Inc. using 2017 as a base year. (If amount and percentage are a decrease show the numbers as negative, eng, ss,000, 12.25% or (ss,000), ( 12.25%). Roernd percentages to O decimal places, e.g. u%.) COOKIE&COFFEE CREATIONS INC Income Statement Year Ended October 31 search Assignment Gradebook ORION Downloadabln eTextbook CALCULATOR FULL SCREEN PRINTER VERSION 2018 and 2017. (Round pemntages to 2 decimal places, e.g. 12.25%. Do not leave Prepare a vertical analysis of the income statement for Cookie& Coffee Creations Inc. for answer field blank. Enter O COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 17 Vertical $485,625 222,694 262,931 96 $462,500 %20e,12s % 254,375 45% Sales Cost of goods sold Gross profit Operating expenses Salaries and wages espense 147,99 17,600 48,186 213,765 49,166 |% 146,350 % 9,100 % 42,925 % 198,375 % 56,000 Depreciation expense Other operating expenses Total operating expenses Income from operations Other expenses Interest expense 413 949 PM 130/2015 arch 0 2,500 2,913 46,253 9,251 $37,002 Loss on disposal of plant assets Total other expenses Income before income tax Income tax expense Net income % 56,000 % 14,000 % $42,000 LINK TO TEXT What impact would borrowing an additional $20,000 to buy more equipment have on each of the ratios in (a) above, assuming that no chan statement and balance sheet? 1. Current ratio 2. Debt to assets 3. Gross profit rate 4. Profit margin 5. Return on assets ere to search