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he comparative financial statements prepared at December 31, 2019, for ABC Company showed the following summarized data: 2019 2018 Income Statement Sales Revenue $ 222,000
he comparative financial statements prepared at December 31, 2019, for ABC Company showed the following summarized data:
2019 | 2018 | |
Income Statement | ||
Sales Revenue | $ 222,000 | $ 185,000 |
Cost of Goods Sold | 127,650 | 111,000 |
Gross Profit | 94,350 | 74,000 |
Operating Expenses | 39,600 | 33,730 |
Interest Expense | 4,000 | 3,270 |
Income before Income Tax Expense | 50,750 | 37,000 |
Income Tax Expense (30%) | 15,225 | 11,100 |
Net Income | $ 35,525 | $ 25,900 |
Balance Sheet | ||
Cash | $ 40,000 | $ 38,000 |
Accounts Receivable, Net | 18,500 | 16,000 |
Inventory | 25,000 | 22,000 |
Property and Equipment, Net | 123,400 | 119,000 |
Total Assets | $ 206,900 | $ 195,000 |
Accounts Payable | $ 27,000 | $ 25,000 |
Income Tax Payable | 3,500 | 2,800 |
Note Payable, Long-Term | 75,500 | 92,200 |
Total Liabilities | $ 106,000 | $ 120,000 |
Contributed Capital (25,000 shares outstanding) | 25,000 | 25,000 |
Retained Earnings | 75,900 | 50,000 |
Total Liabilities and Shareholders Equity | $ 206,900 | $ 195,000 |
Compute the following Profitability Ratios for 2019...
(include one decimal place)
Earnings per Share = $ per share
Fixed-Assets Turnover Ratio = times
Gross Profit Percentage = %
Net Profit Margin = %
Price/Earnings Ratio = times (if the market price is $17/share)
Return on Equity (ROE) = %
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