Question
Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Sale $ 340,000 Cost of goods sold $ 250,100 Gross Profit $ 89,900 Operating Expenses
Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5
Sale | $ 340,000 | |
Cost of goods sold | $ 250,100 | |
Gross Profit | $ 89,900 | |
Operating Expenses | $ 55,000 | |
Loss on Sale of equipment | $ 2,500 | $ 57,500 |
Profit from Operations | $ 32,400 | |
Other expenses | ||
Interest Expense | $ 3,500 | |
Profit before Income Tax | $ 28,900 | |
Income Tax Expense | $ 12,000 | |
Profit | $ 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
20X5 | 20X4 | |
Cash | $ 6,450 | $ 4,100 |
Accounts Receivable | $ 72,000 | $ 6,500 |
Inventory | $ 110,250 | $ 140,000 |
Prepaid Expenses | $ 1,750 | $ 1,020 |
Equipment | $ 96,000 | $ 100,000 |
Accumulated Depreciation - equipment | $ (50,000) | $ (42,000) |
Total Assets | $ 236,450 | $ 209,620 |
Account Payable | $ 16,230 | $ 9,900 |
Interest Payable | $ 810 | $ 10 |
Income taxes payable | $ 10,800 | $ 9,500 |
Dividends Payable | $ 1,800 | $ 2,800 |
Long-term Notes Payable | $ 55,000 | $ 62,000 |
Common shares | $ 135,000 | $ 123,000 |
Retained Earnings | $ 16,310 | $ 2,410 |
Total 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%)
Total return on assets at December 20X5 was:
Between 17% and 33%
Between 34% and 68%
Equal or above 69%
Not enough data provided to calculate it
Equal or below 16%
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