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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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