Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017 2017 2016 Gross sales $ 19,400 $ 15,300 Sales returns and allowances
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017 | ||||
2017 | 2016 | |||
Gross sales | $ | 19,400 | $ | 15,300 |
Sales returns and allowances | 800 | 100 | ||
Net sales | $ | 18,600 | $ | 15,200 |
Cost of merchandise (goods) sold | 11,900 | 8,900 | ||
Gross profit | $ | 6,700 | $ | 6,300 |
Operating expenses: | ||||
Depreciation | $ | 740 | $ | 620 |
Selling and administrative | 2,500 | 2,200 | ||
Research | 590 | 520 | ||
Miscellaneous | 400 | 320 | ||
Total operating expenses | $ | 4,230 | $ | 3,660 |
Income before interest and taxes | $ | 2,470 | $ | 2,640 |
Interest expense | 600 | 520 | ||
Income before taxes | $ | 1,870 | $ | 2,120 |
Provision for taxes | 748 | 848 | ||
Net income | $ | 1,122 | $ | 1,272 |
LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017 | ||||
2017 | 2016 | |||
Assets | ||||
Current assets: | ||||
Cash | $ | 12,100 | $ | 9,300 |
Accounts receivable | 16,700 | 12,700 | ||
Merchandise inventory | 8,700 | 14,200 | ||
Prepaid expenses | 24,200 | 10,200 | ||
Total current assets | $ | 61,700 | $ | 46,400 |
Plant and equipment: | ||||
Building (net) | $ | 14,600 | $ | 11,200 |
Land | 13,700 | 9,200 | ||
Total plant and equipment | $ | 28,300 | $ | 20,400 |
Total assets | $ | 90,000 | $ | 66,800 |
Liabilities | ||||
Current liabilities: | ||||
Accounts payable | $ | 13,200 | $ | 7,200 |
Salaries payable | 7,200 | 5,200 | ||
Total current liabilities | $ | 20,400 | $ | 12,400 |
Long-term liabilities: | ||||
Mortgage note payable | 22,400 | 20,700 | ||
Total liabilities | $ | 42,800 | $ | 33,100 |
Stockholders Equity | ||||
Common stock | $ | 21,100 | $ | 21,100 |
Retained earnings | 26,100 | 12,600 | ||
Total stockholders equity | $ | 47,200 | $ | 33,700 |
Total liabilities and stockholders equity | $ | 90,000 | $ | 66,800 |
Calculate the asset turnover ratio. (Enter your response as a decimal rounded to 2 places.)
2017 | 2016 | |
Asset turnover ratio | ||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started