Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, I need help with this problem. Income Statement for year 2011 2010 Net Sales Revenue (all Credit Sales) 230,000 200,000 Cost of Goods Sold

Hi, I need help with this problem.

image text in transcribed Income Statement for year 2011 2010 Net Sales Revenue (all Credit Sales) 230,000 200,000 Cost of Goods Sold 165,000 150,000 Gross Profit 65,000 50,000 Salaries & admin Expense 9,500 10,000 Depreciation Expense 14,500 14,000 Income before Tax 41,000 26,000 Tax expense 11,000 5,000 Net Income 30,000 21,000 Shares Outstanding 150,000 150,000 Stock Price 15.00 12.00 Balance sheet @ year end 2011 2010 Current Assets Cash 33,000 20,000 Accounts Receivables, net (2009 ending 20,000) 33,000 14,000 Inventory (2009 ending 25,000) 27,000 20,000 Total Current Assets 93,000 54,000 Property Plant & Equipment 60,000 78,000 Accumulated depreciation (29,000) (24,000) Total Assets 124,000 108,000 Accounts Payable 29,000 15,000 Income Tax Payable 7,000 8,000 Total Current Liabilities 36,000 23,000 Bonds Payable 27,000 33,000 Total Liabilities 63,000 56,000 Common Stock 18,000 14,000 Retained Earnings 43,000 38,000 Total Liabilities and Shareholders Equity 124,000 108,000 Find: 2011 2010 1 Current Ratio 2 Price/Earnings Ratio 3 Accounts Receivable Turnover 4 Inventory Turnover 5 Earning per share (Ignore Dividends) 6 Quick ratio (Acid Test) 7 Debt Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Mathematical Statistics With Applications In R

Authors: Chris P. Tsokos, K.M. Ramachandran

2nd Edition

124171133, 978-0124171138

Students also viewed these Accounting questions