QUESTION 3 2008 111 Table 4-2. Income Statement and Balance Sheet for Sam's Appliances Income Statement Balance Sheet Years Ending December 31 January 1 through December 31 Years Years ACCOUNT 2006 2007 2008 CATEGORY 2006 2007 Net Sales $ 330$ 441 $ 462 Current Assets $ 82 $ 94 $ Cost or Goods Sold 148 200 235 Fixed Assets 215 208 Gross Profit$ 182$ 241$ 227 Total Assets $ 2976 302$ Operating Expenses 148 163 181 Liabilities and Owner's Equity EBIT 345 78$ 46. Current Liabilities $ 275 79 $ Interest 5 7 8 Total Long-Tem Debt 68 77 EBT $ 29 $ 71$ 38 Total Liabilities $ 95$ 156$ Takes 8 18 10 Owners Equity 202 146 Net Profit $ 21$ 53$ 28 Total Liabilities & OE $ 297 $ 302 $ 195 306 $ 87 70 157 149 306 Refer to Table 4-2. The percentage change in sales from 2007 to 2008 was approximately -4.54 45.4 4.76 4.54 -4.76 January 46,062 545 45,517 13,841 31,676 February 44,759 685 44,074 11,583 32.491 Total Revenues Returns & Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses Officer's Salary Salaries Payroll Taxes Rent Janitorial Utilities Depreciation Sales Taxes Total Operating Expenses Operating Profit/Loss Interest Expense Net Profit/Loss 2,500 15,750 3,623 2,000 150 512 500 2.994 28.029 3,647 150 3,497 2,500 14,250 3,278 2,000 150 485 500 2.909 26,072 6,419 150 6,269 percent Refer to Table 4-1. Using a vertical analysis of January data, Payroll Taxes were approximately 737 0.0796 7.96 0.0737 2008 111 195 Table 4-2. Income Statement and Balance Sheet for Sam's Appliances Income Statement Balance Sheet Years Ending December 31 January 1 through December 31 Years Years ACCOUNT 2006 2007 2008 CATEGORY 2006 2007 Net Sales $ 330 $ 441 $ 462 Current Assets $ 82 $ 946 COSTO Goods Sold 148 200 235 Fixed Assets 215 208 Gross Profits 1825 241 $ 227 Total Assets $ 2975 302 $ Operating Expenses 148 163 181 Liabilities and Owner's Equity EBIT 345 78$ 46 Current Liabilities $ 27$ 79 $ interest 5 7 8 Total Long-Tem Debt 68 77 EBT $ 29$ 71 $ 38 Total Liabilities $ 95 156 $ Taces 8 18 10 Owner's Equity 202 146 Net Profit $ 21$ 53$ 28 Total Liabilities & OE 297 $ 302 $ 306 5 87 70 157 149 306 Refer to Table 4-2. The Fixed Asset Turnover ratio for 2008 was approximately O 2.22 2.29 237 1.52