Question
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data: Current Previous Income Statement Sales revenue $ 290,000 $
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data: |
Current | Previous | |||||
Income Statement | ||||||
Sales revenue | $ | 290,000 | $ | 253,000 | ||
Cost of goods sold | 154,000 | 144,000 | ||||
Gross profit | 136,000 | 109,000 | ||||
Operating expenses | 75,300 | 68,000 | ||||
Interest expense | 4,900 | 4,800 | ||||
Income before income taxes | 55,800 | 36,200 | ||||
Income tax expense | 16,740 | 5,200 | ||||
Net income | $ | 39,060 | $ | 31,000 | ||
Balance Sheet | ||||||
Cash | $ | 9,560 | $ | 10,200 | ||
Accounts receivable (net) | 41,000 | 34,000 | ||||
Inventory | 62,000 | 57,000 | ||||
Property and equipment (net) | 67,000 | 60,000 | ||||
$ | 179,560 | $ | 161,200 | |||
Current liabilities | $ | 16,700 | $ | 34,400 | ||
Note payable (long-term) | 67,000 | 67,000 | ||||
Common stock (par $5) | 43,200 | 43,200 | ||||
Additional paid-in capital | 9,400 | 7,200 | ||||
Retained earnings* | 43,260 | 9,400 | ||||
$ | 179,560 | $ | 161,200 | |||
*During the current year, cash dividends of $5,200 were declared and paid
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Stockholders equity totaled $43,200 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. (Round your answers to 1 decimal place.)
Net property and equipment totaled $46,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. (Round your answers to 2 decimal places.)
Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.)
Compute the times interest earned ratios for the current and previous years. (Round your answers to 1 decimal place.)
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