Question
Ivanhoe Ltd. is a small restaurant and culinary business started four years ago by Barbara Jones. Initially the company's operations consisted of a small diner.
Ivanhoe Ltd. is a small restaurant and culinary business started four years ago by Barbara Jones. Initially the company's operations consisted of a small diner. In 2023, the company added online culinary lessons to expand sales. The online culinary events are sold to corporations that provide the lessons as performance incentives to their employees. As the culinary lessons side of the business grew in 2024, the company purchased a used vehicle to deliver meal kits to be used for the lessons. All sales in the diner are cash, debit, or credit card, but culinary lessons, which are sold to corporations, are invoiced after the event with payment due in 30 days. Most of the company's suppliers offer terms of 15 days. Selected financial information for Ivanhoe Ltd. follows.
Assets
Cash
Accounts receivable
Inventory
Land
Building and equipment
Total assets
Liabilities and equity
Accounts payable
Short-term note payable
Mortgage payable current
Mortgage payable
Share capital
Retained earnings
Total liabilities and equity
Other information
2024
$10.330
20.660
13.850
18.970
39.420
$103,230
$7.180
2.170
4430
30.570
14.890
43.990
$103.230
2023
$6.640
13.920
7.750
18.970
34.080
$81,360
$7.710
1.880
4.430
35 890
14,890
16.560
$81.360
$170,080
cost of goods sold
Net income
[21)
$7,180
2,170
4,430
30.570
14,890
43,990
$103,230
$211,500
84.530
27.430
$7.710
1,880
4,430
35,890
14,890
16,560
$81,360
$170.080
80.990
10,840
Assume the growth in sales in 2024 is primarily from the online lessons. Calculate the gross margins and the profit margins (Round answers to 1 decimal place, e.g. 15.1%.)
2024
2023
Ivanhoe Ltd. is a small restaurant and culinary business started four years ago by Barbara Jones. Initially the company's operations consisted of a small diner. In 2023, the company added online culinary lessons to expand sales. The online culinary events are sold to corporations that provide the lessons as performance incentives to their employees. As the culinary lessons side of the business grew in 2024, the company purchased a used vehicle to deliver meal kits to be used for the lessons. All sales in the diner are cash, debit, or credit card, but culinary lessons, which are sold to corporations, are invoiced after the event with payment due in 30 days. Most of the company's suppliers offer terms of 15 days. Selected financial information for Ivanhoe Ltd. follows.
Assets
Cash
Accounts receivable
Inventory
Land
Building and equipment
Total assets
Liabilities and equity
Accounts payable
Short-term note payable
Mortgage payable current
Mortgage payable
Share capital
Retained earnings
Total liabilities and equity
Other information
2024
$10.330
20.660
13.850
18.970
39.420
$103,230
$7.180
2.170
4430
30.570
14.890
43.990
$103.230
2023
$6.640
13.920
7.750
18.970
34.080
$81,360
$7.710
1.880
4.430
35 890
14,890
16.560
$81.360
$170,080
cost of goods sold
Net income
[21)
$7,180
2,170
4,430
30.570
14,890
43,990
$103,230
$211,500
84.530
27.430
$7.710
1,880
4,430
35,890
14,890
16,560
$81,360
$170.080
80.990
10,840
Assume the growth in sales in 2024 is primarily from the online lessons. Calculate the gross margins and the profit margins (Round answers to 1 decimal place, e.g. 15.1%.)
2024
2023
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