Question
The following are the comparative financial statements for Delta Corporation for the years ended December 31, 2023, and 2022. Income Statement 2023 2022 Sales Revenue
The following are the comparative financial statements for Delta Corporation for the years ended December 31, 2023, and 2022.
Income Statement | 2023 | 2022 |
Sales Revenue | $250,000 | $220,000 |
Cost of Goods Sold | $150,000 | $140,000 |
Gross Profit | $100,000 | $80,000 |
Operating Expenses | $60,000 | $55,000 |
Net Income | $30,000 | $20,000 |
Balance Sheet | 2023 | 2022 |
Current Assets | $90,000 | $85,000 |
Fixed Assets (net) | $60,000 | $50,000 |
Total Assets | $150,000 | $135,000 |
Current Liabilities | $40,000 | $35,000 |
Long-term Liabilities | $50,000 | $45,000 |
Shareholders' Equity | $60,000 | $55,000 |
Requirements: a. Calculate the current ratio for 2023. b. Determine the debt to equity ratio for 2023. c. Compute the return on equity for 2023. d. Evaluate the trend in gross profit margin from 2022 to 2023. e. Analyze the company's liquidity position.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
