Seaforce Manufacturing Inc.

Income Statement

Year Ended December 31, 20X5

Sale$ 340,000Cost of goods sold$ 250,100Gross Profit$ 89,900Operating Expenses$ 55,000Loss on Sale of equipment$ 2,500$ 57,500Profit from Operations$ 32,400Other expensesInterest Expense$ 3,500Profit before Income Tax$ 28,900Income Tax Expense$ 12,000Profit$ 16,900

Additional Information:

1.Operating expenses include depreciation expense of $10,000

2. Accounts Payable related to the purchase of inventory

3. Equipment that cost $12,500 was sold at a loss of $2,500

4. New equipment was purchased during the year for $8,500

5. Dividends declared and paid in 20X5 totalled $3,000

6. Common shares were sold for $12,000 cash

7. Interest payable in 20X5 was $800 greater than interest payable in 20X4

Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5

20X520X4Cash$ 6,450$ 4,100Accounts Receivable$ 72,000$ 6,500Inventory$ 110,250$ 140,000Prepaid Expenses$ 1,750$ 1,020Equipment$ 96,000$ 100,000Accumulated Depreciation - equipment$ (50,000)$ (42,000)Total Assets$ 236,450$ 209,620Account Payable$ 16,230$ 9,900Interest Payable$ 810$ 10Income taxes payable$ 10,800$ 9,500Dividends Payable$ 1,800$ 2,800Long-term Notes Payable$ 55,000$ 62,000Common shares$ 135,000$ 123,000Retained Earnings$ 16,310$ 2,410Total Liabilities & Shareholders' Equity$ 236,450$ 209,620

Round answers to fit 2 decimal places in all questions (in % questions a 0.12 is presented as 12%, so a 0.124 is rounded as 12% and 0.127 is rounded as 13%)

The working capital turnover at December 20X5 was:

Between 0.12 and 0.23

Equal or above 0.48

Between 0.24 and 0.47

Equal or below 0.11

Not enough data provided to calculate it