Question 3: (Round all answers to two decimal places unless otherwise stated).
3a, Calculate the inventory turnover (COGS) for 2019.
3b, Calculate the accounts payable turnover for 2019.
3c, Calculate the capital asset turnover for 2019.
3d, Calculate the total asset turnover for 2019.
Tasty Corp. Income Statement Year ended December 31 Sales Less: Cost of goods sold Gross margin Operating expenses Salaries, wages & benefits Utilities Depreciation/amortization Insurance Leasing Other Total operating expenses Earning before interest and taxes Interest expense Earnings before tax Income tax (20%) Net income Additional information: Contribution margin 2019 2018 2017 $ 1,252,000 $ 1,475,000 $ 1,560,000 685,000 725,000 745,000 $ 567,000 $ 750,000 $ 815,000 $ 146,000 $ 142,000 $ 135,000 28,400 26,500 25,000 24,000 35,000 35,000 17,500 15,500 15,000 34,000 28,000 28,000 8,500 2,500 6,500 258,400 $ 249,500 $ 244,500 308,600 $ 500,500 $ 570,500 36,000 48,000 54,000 272,600 $ 452,500 $ 516,500 54,520 90,500 103,300 218,080 $ 362,000 $ 413,200 51.00% 49.00% 52.00% $ $ $ $ Tasty Corp, Balance Sheet at December 31 2019 $ 185,000 $ 37,500 12,400 39,000 $ 273,900 $ $ 600,000 $ 2017 Assets Current assets Cash 156,000 Account receivable 48,000 Prepaid expenses 18,500 Inventories 45,000 Total Current Assets 267,500 Non-current assets Land 600,000 Building 1,100,000 (250,000) Accumulated depreciation, building Equipment 348,000 (125,000) Accumulated depreciation, equipment Total Non-current assets 1,673,000 Total Assets $1,907,800 $ 1,940,500 Current liabilities Liabilities & Equity Current Liabilities Line of credit 29,500 $ 28,000 $ 25,000 Account payable 51,200 46,800 43,000 Wages payable 9,500 4,500 6,500 Current portion of mortgage payable 36,000 36,000 36,000 Total Current Liabilities 126,200 $ 115,300 $ 110,500 Non-Current Liabilities Mortgage payable 367,000 $ 400,000 $ 436,000 400,000 500,000 500,000 8% Bonds payable, due 2021 Total Non-Current Liabilities Total Liabilities 767,000 $ 900,000 $ 936,000 893,200 $ 1,015,300 $ 1,046,500 Equity $ 600,000 $ 600,000 $ 600,000 Common shares, 200,000 shares issued Preferred shares, 15,000 shares issued Retained earnings 65,000 65,000 65,000 300,200 227,500 229,000 Total Equity $ 965,200 $ 892,500 $ 894,000 Total Liabilities & Equity $ 1,858,400 $ 1,907,800 $ 1,940,500 Additional information for 2019: - bonds were redeemed -no new debt was issued - equipment originally costing $89,000 was sold for its book value of $49,000 dividends of $100,000 were declared & paid in 2019 2018 148,000 $ 46,500 22,300 44,000 260,800 $ 600,000 $ 1,100,000 1,100,000 (285,000) (265,000) 259,000 348,000 (89,500) (136,000) $ 1,584,500 $ 1,647,000 $ $ 1,858,400 $ $ $ $ $
