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The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales $ 9,300,000 Cost of Goods Sold 5,750,000 Depreciation Expense 550,000
The financial statements of Flathead Lake Manufacturing Company are shown below.
Income Statement 2017 | |||
Sales | $ | 9,300,000 | |
Cost of Goods Sold | 5,750,000 | ||
Depreciation Expense | 550,000 | ||
Gross Profit | $ | 3,000,000 | |
Selling and Administrative Expenses | 2,200,000 | ||
EBIT | $ | 800,000 | |
Interest Expense | 200,000 | ||
Income before Tax | $ | 600,000 | |
Taxes | 375,000 | ||
Net Income | $ | 225,000 | |
Flathead Lake Manufacturing Comparative Balance Sheets | ||||||
2017 | 2016 | |||||
Cash | $ | 50,000 | $ | 40,000 | ||
Accounts Receivable | 570,000 | 600,000 | ||||
Inventory | 530,000 | 460,000 | ||||
Total Current Assets | $ | 1,150,000 | $ | 1,100,000 | ||
Fixed Assets | 2,050,000 | 1,400,000 | ||||
Total Assets | $ | 3,200,000 | $ | 2,500,000 | ||
Accounts Payable | $ | 320,000 | $ | 300,000 | ||
Bank Loans | 480,000 | 400,000 | ||||
Total Current Liabilities | $ | 800,000 | $ | 700,000 | ||
Long-term Bonds | 1,500,000 | 1,000,000 | ||||
Total Liabilities | $ | 2,300,000 | $ | 1,700,000 | ||
Common Stock (200,000 shares) | 200,000 | 200,000 | ||||
Retainded Earnings | 700,000 | 600,000 | ||||
Total Equity | $ | 900,000 | $ | 800,000 | ||
Total Liabilities and Equity | $ | 3,200,000 | $ | 2,500,000 | ||
Note: The common shares are trading in the stock market for $15 per share. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's total asset turnover for 2017 is _________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)
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