PHAROAH COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $ 72,000 $69,000 Debt investments (short-term) 54,000 39.000 Accounts receivable 107,000 90,000 Inventory 236,000 162,000 Prepaid expenses 30,000 27,000 Land 133,000 133,000 + (pet) Building and equipment (net) 260,000 188,000 Total assets $892,000 $708,000 Liabilities and Stockholders' Equity Notes payable Accounts payable $170,000 $106,000 65,000 54.000 42.000 42,000 Accrued liabilities 70 Tepara CAPCOC UUUUUU Land 133,000 133,000 Building and equipment (net) 260,000 188,000 Total assets $892,000 $708,000 Liabilities and Stockholders' Equity Notes payable Accounts payable $170,000 $106,000 65,000 54,000 42,000 42,000 Accrued liabilities Bonds payable, due 2025 250,000 171,000 Common stock, $10 par 209,000 209,000 Retained earnings 156,000 126,000 Total liabilities and stockholders' equity $892,000 $708,000 PHAROAH COMPANY Income Statements For the Years Ended December 31 2022 Sales revenue $898.000 $789 000 PHAROAH COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $898,000 $789,000 Cost of goods sold 647,000 575,000 Gross profit 251,000 194,000 214,000 160,000 Operating expenses Net income $57,000 $54,000 Additional information: 1. Inventory at the beginning of 2021 was $115,000. 2. Accounts receivable (net) at the beginning of 2021 were $89.000. 3. Total assets at the beginning of 2021 were $633.000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. (21) LIQUIDITY Current ratio 1.921 Accounts receivables turnover LO3 9116 times times 42 times times Inventory turnover 13 % 2022 * Change PROFITABILITY Profit margin 6343 112 T 6.84 % 176 times I 8.1 Asset turnover 7.1 Return on assets 2. Earnings per shares 20,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $55,000 Return on common stockholders' equity 2. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022 levels. Total assets on December 31, 2023, were $895,000. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Price-earnings ratio 3. 2022 2023 Return on common stockholders' equity Debt to assets ratio Price earnings ratio Assistance Used e Textbook and Media Textbook Dar December 31 Assets 2022 2021 Cash $72,000 $69,000 Debt investments (short-term) 54,000 39,000 Accounts receivable 107,000 90,000 Inventory 236,000 162,000 Prepaid expenses 30,000 27,000 Land 133,000 133,000 Building and equipment (net) 260,000 188,000 $892,000 $708,000 Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable $170,000 $106,000 65,000 54.000 42,000 42.000 250,000 171.000 Accrued liabilities Bonds payable, due 2025 Liabilities and Stockholders' Equity Notes payable $170,000 $106,000 Accounts payable 65,000 54,000 Accrued liabilities 42,000 250,000 42,000 171,000 Bonds payable, due 2025 Common stock, $10 par 209,000 209,000 Retained earnings 156,000 126,000 Total liabilities and stockholders' equity $892.000 $708,000 PHAROAH COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $898,000 $789,000 Cost of goods sold Gross profit Operating expenses 647.000 251,000 194,000 575,000 214.000 160,000 PHAROAH COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $898,000 $789,000 Cost of goods sold 647,000 575,000 Gross profit 251,000 214,000 Operating expenses 194,000 160,000 Net income $ 57,000 $54,000 Additional information: 1. Inventory at the beginning of 2021 was $115,000. 2. Accounts receivable (net) at the beginning of 2021 were $89.000. 3. Total assets at the beginning of 2021 were $633.000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account