Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Im trying to figure out the last part of the question also Help Acrobat Shar The comparative balance sheet of loemack Coffee Shop Inc. at
Im trying to figure out the last part of the question also
Help Acrobat Shar The comparative balance sheet of loemack Coffee Shop Inc. at October 31, 2020 for the years 2020 and 2019, and the income statements for the years ended October 31, 2019 and 2020, are presented below. JoeMack Coffee Shop Inc. JoeMack Coffee Shop Inc. Balance Sheet Income Statement October 31 Year Ended October 31 Assets 2020 2019 2020 2019 Cash $22,324 $5,550 Sales $485,625 $462,500 Accounts receivable 3,250 2,710 Cost of goods sold 222,624 208,125 Inventory 7,897 7.450 Gross profit $262,931 $254,375 Prepaid expenses 5,800 6,050 Operating expenses o Equipment 102,000 75,500 Salaries and wages expense 147,979 146,350 11 Accumulated depreciation -25,200 9,100 Depreciation expense 17,600 9,100 12 Total assets $116,071 $5,160 Other operating expenses 48,186 42,925 13 Total operating expenses 213,765 198,375 14 Liabilities and Stockholders' Equity Income from operations 49.166 56,000 15 Accounts payable $1,150 $2.450 Other expenses 16 Income taxes payable 9,251 7,200 Interest expense 413 0 17 Dividends payable 27,000 27,000 Loss on disposal of plant assets 2,500 18 Salaries and wages payable 7.250 1.230 Total other expenses 2,913 0 19 interest payable IRR 0 Income before income tax 46.253 56,000 20 Note payable-current portion 4,000 0 Income tax expense 9.251 14,000 6.000 21 Note payable-long-term portion 0 Net Income 42.000 37,002 22 Stockholders Equity Preferred stock, no par, 56 cumulative - 3,000 23 and 2,800 shares issued, respectively 15,000 14,000 24 common stock, $1 par -25,180 shares issued 25,180 25.180 25 Additional paid in capital-treasury stock 250 26 Retained earnings 20.802 10.800 02 02-0 GE 02-Financial Statements 04 05 0 o e Type here to search G H $262,981 $254,375 Gross profit Operating expenses Salaries and wages expense Depreciation expense Other operating expenses Total operating expenses Income from operations Other expenses Interest expense Loss on disposal of plant assets Total other expenses Income before income tax Income tax expense Net income 147,979 146,350 17,600 9,100 48,186 42,925 213,765 198,375 49,166 56,000 0 0 0 0 D 8 Inventory 7,897 7,450 9 Prepaid expenses 5,800 6,050 10 Equipment 102,000 75,500 11 Accumulated depreciation -25,200 -5, 100 12 Total assets $116,071 $88,160 13 Liabilities and Stockholders' Equity 15 Accounts payable $1,150 $2,450 16 Income taxes payable 9,251 7,200 17 Dividends payable 27,000 27,000 18 Salaries and wages payable 7.250 1,280 19 Interest payable 188 20 Note payable-current portion 4,000 21 Note payable-long-term portion 6,000 0 22 Stockholders Equity Preferred stock, no par, $6 cumulative.- 3,000 23 and 2,800 shares issued, respectively 15,000 14,000 24 Common stock, $1 par-25, 180 shares issued 25,180 25,180 25 Additional paid in capital-treasury stock 250 250 26 Retained earnings 20,802 10,800 27 Total liabilities and stockholders' equity $116,071 $88,160 28 29 Additional information: 30 Total common stockholders' equity at November 1, 2018, was $23,180. 31 Total assets at November 1, 2018, were $33,180. 32 Dividends on preferred stock were $16,800 in 2015 and $18,000 in 2020, 33 Use the Above information to answer questions 2-a,b,c in the next three tabs 01 Q2-Financial Statements 02-a 02-b 413 2.500 2,913 46,253 9,251 37,002 0 56,000 14,000 42,000 Q3 04 05 Type here to search o i X 1.99 H K N P B 2019 Calculate the following Rate Current ratio De tots Gross profitrate Profit margin Return on asets Return on common stockholders 2020 1.99 0.86 95.14 7.52 35.24 41.32 55 9.08 69.23 70.01 What impact use the drop down it would borrowing an additional $20,000 to buy more pirant have on each of the ratios in fassuring that no changes are expected on the income statement and balance sheet Current ratio Gross profitrate Protag Roussets Return on common stockholders' equity 3 -4 23 30 33 34 35 01 02-Financial Statements Q2-a 02-0 04 05 o Type here to search o ii e G C Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started