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The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data Current Previous Income Statement Sales revenue Cost of goods
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data Current Previous Income Statement Sales revenue Cost of goods sold $180,000 $165,000 10,000 100,000 Gross proft Operating expenses Interest expense 70,000 65,000 53,300 50,400 2,700 2,600 Income before income taxes Income tax expense 14,000 12.000 4,000 3,000 Net income S 10,000 $ 9,000 Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) $ 4,000 $ 8,000 19,000 23,000 40,000 35.000 45,000 38,000 $108,000 $104,000 Current liabilities Note payable (long-term) Common stock (par $5) Additional paid-in capital Retained earnings* $ 16,000 $ 19,000 45.000 45.000 30,000 30,000 5,000 12,000 5,000 5,000 $108,000 $104,000 During the current year, cash dividends of $3,000 were declared and paid. Required: 1-a. Compute the gross profit percentage for the current and previous years. (Round your answers to 1 decimal place.) ss Profit Percentage Current Year Previous Year 1-b. Are the current year results better, or worse, than those for the previous year? O Better O Worse 2-a. Compute the net profit margin for the current and previous years. (Round your answers to 1 decimal place.) Net Proft Margin Current Year Previous Year
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