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The financial statements of Tex-X Global Company are shown below. Income Statement 2020 2019 Sales 12,400,000 10,200,000 COGS 8,600,000 6,750,000 Depreciation 610,000 550,000 Selling and
The financial statements of Tex-X Global Company are shown below.
Income Statement | ||
2020 | 2019 | |
Sales | 12,400,000 | 10,200,000 |
COGS | 8,600,000 | 6,750,000 |
Depreciation | 610,000 | 550,000 |
Selling and Admin Expenses | 2,500,000 | 2,200,000 |
Operating Profit (EBIT) | 690,000 | 700,000 |
Interest Expense | 210,000 | 200,000 |
EBT | 480,000 | 500,000 |
Taxes (21%) | 100,800 | 105,000 |
Net Income | 379,200 | 395,000 |
Balance Sheet, year-end | ||
2020 | 2019 | |
Assets | ||
Cash | 50,000 | 90,000 |
Account Receivables | 570,000 | 600,000 |
Inventories | 530,000 | 460,000 |
Total Current Assets | 1,150,000 | 1,150,000 |
PPE, net | 2,050,000 | 1,350,000 |
Total Assets | 3,200,000 | 2,500,000 |
Liabilities | ||
Account payables | 320,000 | 300,000 |
Short-term Debt | 480,000 | 400,000 |
Total Current Liabilities | 800,000 | 700,000 |
Long-term Debt | 1,500,000 | 1,000,000 |
Total Liabilities | 2,300,000 | 1,700,000 |
Common Stock | 200,000 | 200,000 |
Retained Earnings | 700,000 | 600,000 |
Total Shareholder Equity | 900,000 | 800,000 |
Total Liability and Equity | 3,200,000 | 2,500,000 |
The company's profitability based on ROA ratio has ............... from 2019 to 2020.
Question 14 options:
| risen |
| fallen |
| stayed the same |
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