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Togo Co. has the following financial statements. Togo Co. Income Statement for the Year 27 of 32 Sales revenue Less: Cost of goods sold Gross
Togo Co. has the following financial statements.
Togo Co.
Income Statement for the Year
27 of 32
Sales revenue
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Depreciation
Operating income
Less: Interest expense
LIncome fayes
Net income
$18,000.000
12,000.000
$ 6,000.000
$3,700.000
500,000
4,200.000
$ 1,800.000
100.000
800,000
900.000
900.0.00
::::::::::::::::::::::::::::::: :::: : : : : : : : : : : : : : : : : ::: : ::: : : ::: :::::
Togo Co.
Balance Sheet at the End of the Year
Current assets: Cash
Accounts receivable
Inventory
Long-term assets: At cost
Accumulated depreciation
$1.000.000
3.600.000
2.400,000
$ 7.000,000
$5,000,000
3,000,000
Total assets
2.000,000
$ 9.000.000
Liabilities & Shareholders' Equity
Current liabilities: Trade accounts payable
Other current liabilities
Long-term liabilities: Mortgage
Total liabilities
$2.250,000
750,000
$ 3.000.000
1,500,000
$ 4.500,000)
Shareholders' Equity: Common shares
Retained earnings
Total liabilities & Shareholders' Equity
$1,500,000
3,000,000
4.500,000
$ 9,000.000
261
Chapier7 Financial Statement Ananysto
Togo Co.
Statement of Retained Earnings for the Year
Net income for the year
Dividends
Add: Retained earnings brought forward
Retained earnings carried forward
900.000
300,000
600.000
2,400,000
$ 3.000,000
Required
use the information in the financial statements
following questions:
answer the
(a)
Calculate the following ratios:
(1)
return on sales ratio (as a %)
return on assets ratio (as a %)
(ili)
return on equity ratio (as a %)
10) Based on these ratios, comment on the profitability of the
company.
(c) Calculate the following ratios:
(i) the current ratio
(i) the quick ratio
(d)
Based on these ratios, comment on the liquidity of the
company.
(e) Calculate the following ratios:
(1)
the gross profit to sales ratio (as a %)
(11)
the ratio of operating expenses to sales (as a %)
(11)
the operating income to sales ratio (as a %)
(iv) the net income to sales ratio (as
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Introductory Statistics For The Behavioural Sciences
Authors: Joan Welkowitz, Robert B. Ewen, Jacob Cohen
2nd Edition
0127432604, 9780127432601
