Question
MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash $ 50,000 Accounts receivable 70,000 Inventory 110,000 Net plant and equipment 220,000 Total assets
MEGAFRAME COMPUTER COMPANY |
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Balance Sheet |
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As of December 31 |
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ASSETS |
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Cash | $ | 50,000 | |
Accounts receivable |
| 70,000 | |
Inventory |
| 110,000 | |
Net plant and equipment |
| 220,000 | |
Total assets | $ | 450,000 | |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Accounts payable | $ | 70,000 | |
Accrued expenses |
| 50,000 | |
Long-term debt |
| 130,000 | |
Common stock |
| 70,000 | |
Paid-in capital |
| 40,000 | |
Retained earnings |
| 90,000 | |
Total liabilities and stockholders' equity | $ | 450,000 | |
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MEGAFRAME COMPUTER COMPANY |
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Income Statement |
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For the year ended December 31 |
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Sales (all on credit) | $ | 875,000 | |
Cost of goods sold |
| 600,000 | |
Gross profit | $ | 275,000 | |
Sales and administrative expenses |
| 30,000 | |
Depreciation |
| 55,000 | |
Operating profit | $ | 190,000 | |
Interest expense |
| 25,000 | |
Profit before taxes | $ | 165,000 | |
Taxes (30%) |
| 49,500 | |
Net income | $ | 115,500 | |
Please use the tables above to calculate followings ratios and show your work:
(1) Accounts Receivable Days
(2) ROE
(3) Inventory Turnover
(4) Net Profit Margin
(5) ROA
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