PLEASE CHECK IF MY CURRENT ANSWERS ARE CORRECT AND STILL CONFUSED ABOUT HOW TO DO THE FINANCIAL RATIOS. THANK YOU!

You are to prepare financial statements for the year ended December 31, 2015 for IDC CORP. Specifically, you are to prepare the following: 1) Classified Balance Sheet for December 31, 2015 2) Multiple-step Income Statement for the year ended December 31, 2015 3) Statement of Retained Earnings for the year ended December 31, 2015 . Compute the following financial ratios: Gross Margin Profit Margin Inventory Turnover Days Sales in Inventory Accounts Receivable Turnover Days Sales Uncollected Asset Turnover Times Interest Earned . . . . Your submission should have a cover page with title, your name and date. The financial statements should be typed in excel or word with appropriate captions identifying each statement. = The financial ratios should be presented in the following format: Profit Margin Net Income 2,457,144 16.4% Net Sales 14,953,224 This ratio would be interpreted as, for every $1 in Net Sales, the company earned 16.4C in Net Income. CALCULATE THE RATIOS FOR 2014 AND FOR 2015. Explain in at least ONE SENTENCE the meanings of the ratios and if IDC CORP. is doing better or worse in 2015 (based on ratio results). IDI CORP. Adjusted Trial Balance December 31, 2015 Credits $ $ Debits 458,700 199,250 248,600 13,000 1,250,000 1,500,000 Cash Accounts Receivable Inventories Prepaid Insurance Land Property and equipment Accumulated Depreciation Accounts Payable Interest Payable Income Taxes Payable Notes Payable Common Stock Additional Paid-in-Capital Retained Earnings, Jan. 1 Dividends Sales Cost of Goods sold Sales salaries Office salaries Depreciation Expense - office Rent expense - sales store Utilities - office Miscellaneous-office Interest expense Income tax expense 205,000 85,700 10,500 22,000 1,000,000 710,000 990,000 586,350 40,000 1,000,000 480,000 100,000 120,000 25,000 25,000 50,000 20,000 50,000 30,000 4,609,550 $ $ 4,609,550 IDC CORP Statement of Retained Earnings For the year ended December 31, 2015 Retained Earning; beginning balance Net income $ 586,350.00 $ 100,000.00 $ 686,350.00 Less: Dividends Retained Earning; ending balance $ 40,000.00 $ 646,350.00 IDC CORP Income Statement For the year ended December 31, 2015 Sales: COGS $ 1,000,000.00 $ 480,000.00 $ 520,000.00 Gross Profit $ 120,000.00 $ 100,000.00 $ 50,000.00 $ 30,000.00 $ 25,000.00 Operating expenses: Office Salaries Sales salaries Depreciation Expense - office Utilities - office Miscellaneous-office Total Operating Expense Income from operations Other income and expenses: Rent expense- sales store Interest expense Income tax expense Net Income $ 325,000.00 $ 195,000.00 $ 50,000.00 $ 25,000.00 $ 20,000.00 $ 95,000.00 $ 100,000.00 IDI CORP Balance Sheet December 31, 2014 IDC CORP Balance Sheet For the year ended December 31, 2015 2014 Assets $ Assets Cash Accounts receivable Inventories Prepaid insurance Land Building and equipment Less: Accumulated depreciation Total assets Current Assets: Cash Accounts Receivable Inventories Prepaid Insurance Total Current Assets: $ $ $ $ 471,450 171,500 278,800 11,000 250,000 1,300,000 (180,000) 2,302,750 458,700.00 199,250.00 248,600.00 13.000.00 $ 919,550.00 $ Property, Plant, & Equipment Land $ $ $ 1,250,000.00 1,500,000.00 (205,000.00) Property & equipment Less: Accumulated depreciation Total Property, Plant, & Equipment: Total Assets: $ 93,400 15,000 8,000 $ 2,545,000.00 $ 3,464,550.00 Liabilities Accounts payable Interest payable Income taxes payable Stockholders' equity Common stock Paid in capital in excess of par Retained eamings Total liabilities and equity Liabilities $ $ 700,000 900,000 586,350 2,302,750 Accounts payable Interest payable Income taxes payable Notes Payable $ 85,700.00 10,500.00 22,000.00 1,000,000.00 $ 1,118,200.00 $ $ Stockholders' equity Common stock Paid in capital in excess of par Retained earnings Total Stockholders' equity Total liabilities & equity $ $ $ 710,000.00 990,000.00 646,350.00 $ 2,346,350.00 $ 3,464,550.00 ID CORP- 2014 Additional is items Sales COGS EBIT Interest Expense $980,500 450,000 3,997,898 55,000 Net Sale COGS GM 980,500 450,000 54.11% 2014 Financial Ratios Gross Margin= 2015 Financial Ratios Gross Margin= = 54.11% x 100 = 0.52 100 = 5200% Net Sales- COGS X 100 Net Sales 530,500 980500 Net Sales- COGS Net Sales 1000000 - 480000 1000000 520000 1000000 Profit Margin= Profit Margin= 10% Net Income Net Sales Net Income Net Sales 100000 1000000 980500 Inventory Turnover= COGS 450000 Inventory Turnover= COGS = 193.08% 480000 248600 Avg Inventory Avg Inventory Days Sales in Inventory= = 61.96% Days Sales in Inventory= = 248600 = 51.79% Ending Inventory COGS 278800 450000 Ending Inventory COGS 480000 = = 980500 1000000 = Accounts Receivable Turnover= Sales Avg AR Accounts Receivable Turnover= Sales Avg AR Days Sales Uncollected= 171500 17.49% Days Sales Uncollected= AR 199250 19.93% AR Net Sales 980500 Net Sales 1000000 Asset Turnover= 42.58% Asset Turnover= 1000000 28.86% Net Sales Avg Total Assets 980500 2302750 Net Sales Avg Total Assets 3464550 Times Interest Earned= 3997898 7268.91% Times Interest Earned= EBIT Interest Expense EBIT Interest Expense 55000 25000