Question
QUESTION 6 (12 Marks) Presented below is selected Financial Information for Karaphillis Company: 2020 2019 Net Sales $950,000 $875,000 Cost of Goods Sold $456,000 $412,000
QUESTION 6 (12 Marks)
Presented below is selected Financial Information for Karaphillis Company:
|
| 2020 | 2019 |
| Net Sales | $950,000 | $875,000 |
| Cost of Goods Sold | $456,000 | $412,000 |
| Gross Profit | $494,000 | $463,000 |
| Operating Expenses | $372,000 | $365,000 |
| Operating Income | $122,000 | $98,000 |
| Interest Expense | $46,000 | $44,000 |
| Net Income | $76,000 | $54,000 |
|
|
|
|
| Total Assets | $520,000 | $480,000 |
| Total Liabilities | $312,000 | $245,000 |
| Common Shareholders Equity | $170,000 | $150,000 |
|
|
|
|
| Preferred Dividends | $26,000 | $26,000 |
Required
Calculate the following ratios for the year 2020.
- Debt Ratio
- Gross Profit Percentage
- Return on Net Sales
- Asset Turnover
- Return on Total Assets
- Return on Common Shareholders Equity
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
25th Edition
9781260247985
