CULATOR FULL SCREEN PRINTER VRSION BAC Continuing Cookie Chronicle 13 The comparative balance sheet of Cookie & CoffeCreations Inc. at October 31, 2018 for the years 2018 and 2017, and the income statements for the years ended October 3 and 2018, are presented below COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31 Assets Cash 2018 2017 $22,324 $5,550 Accounts receivable 3,250 7,8977,450 2,710 Inventory Prepaid expenses Equipment 5,800 6,050 102,00075,500 (25,200) (9,100) 116,071 $88,160 Accumulated depreciation Total assets Liabilities and Stockholders Equity Accounts payable Income taxes payable Dlvidends payable 1,150 $2,450 9,2517,200 27,000 27,00 ,250128 Salaries and wages payable 188 Interest payable Note payable-cuetportion 4,000 te paysble-ong term portion 57 AM CALCULAT Preferred stock, no par, $6 cumulative-3,000 and 2,800 Shares issued, respectively Common stock, $1 par-25,180 shares issued Additional paid in capital-treasury stock Retained earnings 15,000 14,000 25,180 25,180 250 0,802 10,800 116,071 $88,160 250 Total liabilities and stockholders' equity 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 Depreciation expense Other operating expenses 147,979 146,350 17,600 9,100 48,186 42,925 213,765 198,375 49,166 56,000 Total operating expenses Income from operations Other expenses Interest expense Loss on disposal of plant assets 413 2,500 2,913 Total other expenses e here to search nt CALCULATOR FULL SCREEN PRINTER VERSION Income before income tax Income tax expense 46,253 56,000 9,251 14,000 $37,002 $42,000 Net incomse Additional information: Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan pro for equal semi-annual payments of $2.500 on May 1 and November 1 of each year, plus interest of S% on the outstanding balance. calculate the following ratios for 2017 and 2018. (Round current retio to 2 decimal places, e.g 12.61, debt to assets and gross profit rate to o decimal places, e.g 17 2018 2017 1. Current ratio 2. Debt to assets 3. Gross profit rate 4. Profit margin S. 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 $16,000 in 2017 nd $18,000 in 2018) vasan CALCULATOR FULL SCREENPRINTER VERSION Prepare a horizontal analysis of the income statement for Cookie&Coffee Creations Inc. using 2017 as a base year. (If amount and percentage are a decrease sh numbers as negative, e.g. -55,000, i 2.2S% or (55,000), (12.25%). Round percentages to O decimal places, eg 29.) COOKIE &COFFEE CREATIONS INC Income Statement Year Ended October 31 2018 2017 Difference Horizontal Analysis $462,500 222,694 208,125 262,931 254,375 Sales $485,625 Cost of goods sold Gross profit Operating expenses 47,979146,350 17,600 9,100 48,186 42,925 213,765 198,375 49,166 56,000 Salaries and wages expense Depreciation expense Other operating expenses Total operating expenses Income from operations Other expenses Iriterest expense 958AM CALCULATOR FULL SCREEN PRINTER VERSION Loss on disposal of plant assets2,500 Total other expenses 2,913 income before income tax 46,253 56,000 Income tax expense 9,251 14,000 Net income $37,002 $42,000 LINK TO TEXT Prepare a vertical analysis of the income statement for Cookie & Coffee Creations Inc. for 2018 and 2017, (Round percentages to 2 decimal places, e.o. 12.25% Do not leaw any answer field blank. Enter O for amounts.) COOKIE &COFFEE CREATIONS INC Income Statement Year Ended October 31 2018 Percentage 2017 Vertical Analysis Sales $485,625 % $462,500 222,694 % 208, 125 Cost of goods sold 262,931 254,375 Gross profit ere to search CALCULAT Salaries and wages expense Depreciation expense Other operating expenses 147,979 17,600 48,186 213,765 49,166 % 146,350 % 9,100 |% 42,925 % 198,375 % 56,000 Total operating expenses Income from operations Other expenses 413 2,500 2,913 46,253 9,251 $37,002 Interest expense Loss on disposal of plant assets Total other expenses 96 56,000 % 14,000 % $42,000 Income before income tax ncome tax expense Net income INK TO TEXT ere to search e Net income $37,002 % $42,000 LINK TO TEXT What Impact would borrowing an additional $20,000 to buy more equioment have on each of the ratios in (a) above, aditional $20,000 to buy more equipment have on each of the ratios in (a) above, assuming that no changes are expected on the incom statement and balance sheet? 1. Current ratio 2. Debt to assets 3.Gross profit rate 4. Profit margin 5. Return on assets 6. Return on common stockholders' equity INK TO EX 959AM