Question
The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 196,000 $ 168,500 Cost of goods sold
The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 196,000 $ 168,500 Cost of goods sold 113,500 100,600 Gross profit 82,500 67,900 Operating expenses and interest expense 56,600 53,300 Pretax income 25,900 14,600 Income tax 8,600 4,300 Net income $ 17,300 $ 10,300 Balance sheet: Cash $ 4,600 $ 7,300 Accounts receivable (net) 14,300 18,300 Inventory 40,600 35,200 Property and equipment (net) 45,900 38,600 Total assets $ 105,400 $ 99,400 Current liabilities (no interest) $ 16,300 $ 17,300 Long-term liabilities (12% interest) 45,300 45,300 Common stock ($5 par value, 6,300 shares outstanding) 31,500 31,500 Retained earnings 12,300 5,300 Total liabilities and stockholders' equity $ 105,400 $ 99,400 2. Compute the ratios in the DuPont model for Year 2. (Round your answers to 2 decimal places.) 2. Compute the ratios in the DuPont model for Year 2. (Round your answers to 2 decimal places.)
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