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The following income statement and balance sheets for Worlds of Fun are provided: Worlds of Fun Income Statement For the year-ended December 31, 2021 Sales
The following income statement and balance sheets for Worlds of Fun are provided:
Worlds of Fun | ||||
Income Statement | ||||
For the year-ended December 31, 2021 | ||||
Sales revenue | $ | 2,484,800 | ||
Cost of goods sold | 1,560,000 | |||
Gross profit | 924,800 | |||
Expenses: | ||||
Operating expenses | 343,000 | |||
Depreciation expense | 67,000 | |||
Loss on sale of land | 4,800 | |||
Interest expense | 23,000 | |||
Income tax expense | 52,000 | |||
Total expenses | 489,800 | |||
Net income | $ | 435,000 | ||
Worlds of Fun | ||||||||
Balance Sheet | ||||||||
December 31 | ||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 126,000 | $ | 107,000 | ||||
Accounts receivable | 95,000 | 78,000 | ||||||
Inventory | 170,000 | 150,000 | ||||||
Prepaid rent | 18,000 | 18,000 | ||||||
Long-term assets: | ||||||||
Land | 280,000 | 220,000 | ||||||
Equipment | 420,000 | 210,000 | ||||||
Accumulated depreciation | (76,000 | ) | (42,000 | ) | ||||
Total assets | $ | 1,033,000 | $ | 741,000 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 54,000 | $ | 74,000 | ||||
Interest payable | 8,000 | 7,000 | ||||||
Income tax payable | 15,400 | 12,500 | ||||||
Long-term liabilities: | ||||||||
Notes payable | 420,000 | 320,000 | ||||||
Stockholders' equity: | ||||||||
Common stock | 290,000 | 290,000 | ||||||
Retained earnings | 245,600 | 37,500 | ||||||
Total liabilities and equity | $ | 1,033,000 | $ | 741,000 | ||||
Earnings per share for the year ended December 31, 2021, is $1.50. The closing stock price on December 31, 2021, is $32.10. Calculate the following profitability ratios for 2021: (Do not round intermediate calculations. Round your answers to 1 decimal place.)
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