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COOKIE & COFFEE CREATIONS INC. EXAMPLE: Income Statement Name of Ratio = 1,234 = 1.0 For the Year Ended October 31 Ratio 1,234 2014 2013
COOKIE & COFFEE CREATIONS INC. | EXAMPLE: | |||||||||
Income Statement | Name of Ratio | = | 1,234 | = 1.0 | ||||||
For the Year Ended October 31 | Ratio | 1,234 | ||||||||
2014 | 2013 | Your Answers (2014): | ||||||||
Sales | $485,625 | $462,500 | Current | = | x/x | = | ||||
Cost of goods sold | 222,694 | 208,125 | Ratio | |||||||
Gross profit | 262,931 | 254,375 | ||||||||
Operating expenses | Debt to | = | x/x | = | ||||||
Salaries & wages expense | 147,979 | 146,350 | Total Assets | |||||||
Depreciation expense | 17,600 | 9,100 | ||||||||
Other operating expenses | 48,186 | 42,925 | Gross Profit | = | x/x | = | ||||
Total operating expenses | 213,765 | 198,375 | Rate | |||||||
Income from operations | 49,166 | 56,000 | ||||||||
Other expenses | Profit | = | x/x | = | ||||||
Interest expense | 413 | 0 | Margin | |||||||
Loss on sale of computer | ||||||||||
equipment | 2,500 | 0 | Return on | = x/x | = | |||||
Total other expenses | 2,913 | 0 | Assets | |||||||
Income before income tax | 46,253 | 56,000 | ||||||||
Income tax expense | 9,251 | 14,000 | ||||||||
Net income | $37,002 | $42,000 | Return on common | = | x/x | = | ||||
Stockholder's Equity | ||||||||||
COOKIE & COFFEE CREATIONS INC. | NOTE: Dividends on preferred stock were $18,000 in 2014 | |||||||||
Balance Sheet | ||||||||||
October 31, 2012 | ||||||||||
Assets | 2014 | 2013 | ||||||||
Cash | $ 22,324 | $ 5,550 | ||||||||
Accounts Receivable | 3,250 | 2,710 | ||||||||
Inventory | 7,897 | 7,450 | ||||||||
Prepaid Expenses | 5,800 | 6,050 | ||||||||
Equipment | 102,000 | 75,500 | ||||||||
Accumulated depreciation | (25,200) | (9,100) | ||||||||
Total assets | $ 116,071 | $ 88,160 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||
Accounts Payable | 9,251 | 7,200 | ||||||||
Income taxes payable | 27,000 | 27,000 | ||||||||
Salaries payable | 7,250 | 1,280 | ||||||||
Interest payable | 188 | 0 | ||||||||
Note payable - current portion | 4,000 | 0 | ||||||||
Note payable - long-term portion | 6,000 | 0 | ||||||||
Preferred stock, no par, $6 cumulative - 3,000 and 2,800 shares issued, respectively | 15,000 | 14,000 | ||||||||
Common stock, $1 par - 25,180 shares issued | 25,180 | 25,180 | ||||||||
Additional paid-in capital - treasury stock | 250 | 250 | ||||||||
Retained earnings | 20,802 | 10,800 | ||||||||
Total liabilities and stockholders' equity | $ 116,071 | $ 88,160 | ||||||||
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