Question
Justice Corporation reported the following financial statements: Justice Corporation Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Assets Current Assets: Cash and Cash
Justice Corporation reported the following financial statements:
Justice Corporation | ||
Comparative Balance Sheet | ||
December 31, 2025 and 2024 | ||
| 2025 | 2024 |
---|---|---|
Assets |
|
|
Current Assets: |
|
|
Cash and Cash Equivalents | $2,028 | $1,622 |
Accounts Receivable | 2,109 | 1,958 |
Merchandise Inventory | 1,346 | 1,063 |
Prepaid Expenses | 1,568 | 2,054 |
Total Current Assets | 7,051 | 6,697 |
Other Assets | 17,151 | 15,425 |
Total Assets | $24,202 | $22,122 |
Liabilities |
|
|
Current Liabilities | $7,447 | $8,483 |
Long-term Liabilities | 4,861 | 3,031 |
Total Liabilities | 12,308 | 11,514 |
Stockholders' Equity |
|
|
Common Stock, no par | 4,794 | 4,808 |
Retained Earnings | 7,100 | 5,800 |
Total Stockholders' Equity | 11,894 | 10,608 |
Total Liabilities and Stockholders' Equity | $24,202 | $22,122 |
Justice Corporation | |
Income Statement | |
Year Ended December 31, 2025 | |
Net Sales Revenue | $22,374 |
---|---|
Cost of Goods Sold | 6,025 |
Gross Profit | 16,349 |
Operating Expenses | 7,477 |
Operating Income | 8,872 |
Interest Expense | 267 |
Income Before Income Taxes | 8,605 |
Income Tax Expense | 2,697 |
Net Income | $5,908 |
Vertical analysis of Justice's balance sheet for 2025 would report
A. a current ratio of 0.95.
B. Cash as 8.38% of total assets.
C. Inventory turnover of 5 times.
D. a 25% increase in Cash.
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