Question
The balance sheet and income statement for Joe's Fish Hut are presented below: Joe's Fish Hut Balance Sheet As at March 31 2018 2017 ASSETS
The balance sheet and income statement for Joe's Fish Hut are presented below:
Joe's Fish Hut Balance Sheet As at March 31 | ||
2018 | 2017 | |
ASSETS | ||
Current Assets | ||
Cash | $156,164 | $56,900 |
Accounts receivable | $24,000 | $10,200 |
Merchandise Inventory | $21,800 | $26,800 |
Total Current Assets | $201,964 | $93,900 |
Property, plant & equipment | $132,000 | $182,000 |
Less: Accumulated depreciation | $-26,000 | $-20,800 |
TOTAL ASSETS | $307,964 | $255,100 |
LIABILITIES AND EQUITY | ||
Liabilities | ||
Current Liabilities | ||
Accounts payable | $27,900 | $36,700 |
Notes Payable-Current Portion | $8,400 | $8,400 |
Total Current Liabilities | $36,300 | $45,100 |
Notes Payable-Noncurrent Portion | $79,000 | $59,000 |
TOTAL LIABILITIES | $115,300 | $104,100 |
Stockholders' Equity | ||
Common stock | $72,000 | $50,200 |
Retained earnings | $120,664 | $100,800 |
TOTAL STOCKHOLDERS' EQUITY | $192,664 | $151,000 |
TOTAL LIABILITIES AND EQUITY | $307,964 | $255,100 |
Joe's Fish Hut Income Statement For the Year Ended March 31, 2018 | |
Sales | $134,000 |
COGS | $85,500 |
Gross Profit | $48,500 |
Operating Expenses | |
Insurance Expense | $830 |
Rent Expense | $4,570 |
Salaries Expense | $5,230 |
Telephone Expense | $710 |
Interest Expense | $1,400 |
Depreciation Expense | $5,200 |
Total Operating Expenses | $17,940 |
Operating Profit Before Tax | $30,560 |
Income Tax Expense | $10,696 |
Net Profit (Loss) | $19,864 |
Complete the following ratio analysis.
Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Calculate the gross profit margin for the 2018. Gross Profit Margin: Answer % b) Calculate the net profit margin for 2018. Net Profit Margin: Answer % c) Calculate the return on equity for 2018. Return on Equity: Answer % d) Calculate the return on assets for 2018. Return on Assets: Answer % e) Calculate the asset turnover ratio for 2018. Asset turnover: Answer times
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started