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Question 12 of 12 Retained earnings Less treasury stock Total liabilities and stockholders' equity COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October
Question 12 of 12 Retained earnings Less treasury stock Total liabilities and stockholders' equity COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2026 2025 Sales $485,625 $462,500 Cost of goods sold 222,694 208,125 Gross profit 262,931 254,375 Operating expenses Salaries and wages expense 147,979 146,350 Depreciation expense 17,600 9,100 Other operating expenses 48,186 42,925 Total operating expenses 213,765 198,375 Income from operations 49,166 56,000 Other expenses Interest expense 413 Loss on disposal of plant assets 2,500 0 Total other expenses 2,913 0 Income before income tax 46,253 56,000 Income tax expense 9,251 14,000 Net income $37,002 $42,000 -/15.5 26.802 16.800 0 (500) $122.821 $94.160 Additional information: and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The uld be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of 0 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. Calculate the following ratios for 2025 and 2026. (Round current ratio to 2 decimal places, e.g. 12.61, debt to assets and gross profit rate to 0 decimal places, e.g. 12 and all other answers to 1 decimal place, e.g. 12.6%.) 1. Current ratio 2. Debt to assets 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2024, were $35,180.) 6. Return on common stockholders' equity (Total common stockholders' equity at November 1, 2024, was $25,180. Dividends on preferred stock were $16,800 in 2025 and $18,000 in 2026). eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
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