Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Create the Income Statement and Balance Sheet for Lemonade Inc. Income Statement Sales Cost of Goods sold Gross Profits Overhead Depreciation expense Total operating expense

image text in transcribed

Create the Income Statement and Balance Sheet for Lemonade Inc. Income Statement Sales Cost of Goods sold Gross Profits Overhead Depreciation expense Total operating expense Operating income (EBIT) Interest expense Earnings before taxes Taxes Net Income S $ 40,000 S 28,000 S 12.000 $ 4,000 S $ 4,000 S 8,000 S S 8.000 $ 1,600 $ 6,400 Balance Sheet Cash Accounts receivable Inventory Total current assets Gross Buildings and equipment Accumulated Depreciation Net fixed assets Other assets Total assets S S 2,000 S 1.000 $ 20,000 $ 23,000 $ 5,000 S $ 5,000 S S 28,000 Accounts payable Notes payable Total current liabilities Long-term debt Total Liabilities Common Stock Retained earnings Total equity Total liabilities and equity S 10,000 S S 10.000 S S 10,000 S S S 18.000 S 28,000 Use the data you calculated to answer the following questions: Calculate Current Ratio Calculate Quick Ratio Calculate Gross Profit Margin Calculate Operating Profit Margin Calculate Net Profit Margin Calculate Earnings Per Share Calculate PE Ratio Calculate Return on Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Harvey Rosen

6th International Edition

0071121234, 978-0071121231

More Books

Students also viewed these Finance questions