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The following income statement and balance sheet for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2015
The following income statement and balance sheet for The Athletic Attic are provided. |
THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2015 | ||
Net sales | $8,760,000 | |
Cost of goods sold | 5,380,000 | |
Gross profit | 3,380,000 | |
Expenses: | ||
Operating expenses | $1,530,000 | |
Depreciation expense | 196,000 | |
Interest expense | 36,000 | |
Income tax expense | 346,000 | |
Total expenses | 2,108,000 | |
Net income | $ 1,272,000 | |
THE ATHLETIC ATTIC Balance Sheet December 31 | ||
2015 | 2014 | |
Assets | ||
Current assets: | ||
Cash | $150,000 | $200,000 |
Accounts receivable | 720,000 | 740,000 |
Inventory | 1,335,000 | 1,005,000 |
Supplies | 96,000 | 71,000 |
Long-term assets: | ||
Equipment | 1,080,000 | 1,080,000 |
Less: Accumulated depreciation | (392,000) | (196,000) |
Total assets | $2,989,000 | $2,900,000 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable | $ 101,000 | $ 77,000 |
Interest payable | 0 | 3,600 |
Income tax payable | 33,000 | 29,600 |
Long-term liabilities: | ||
Notes payable | 460,000 | 460,000 |
Stockholders' equity: | ||
Common stock | 560,000 | 560,000 |
Retained earnings | 1,835,000 | 1,769,800 |
Total liabilities and stockholders equity | $2,989,000 | $2,900,000 |
Earnings per share for the year ended December 31, 2015, are $1.22. The closing stock price on December 31, 2015, is $21.02. |
Required: |
Calculate the following profitability ratios for 2015.(Round your answers to 1 decimal place.) |
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