Question
Use the following data to answer the next 5 questions: Last year, your neighbor ran a frozen yogurt shop and received the following year-end information
Use the following data to answer the next 5 questions:
Last year, your neighbor ran a frozen yogurt shop and received the following year-end information about last years operations from his accountant (assume the following amounts are account balances at the end of the year):
Cash: $6,787
Revenue: $136,893
Accounts Receivable: $435
Direct Material Expenses: $39,450
Direct Labor Expense: $48,563
Depreciation Expense: $5,000
Inventory: $8,575
Promotion (marketing) Expense $6,500
Interest Expense: $8,790
Sales, Gen. & Administrative (SG&A) Expense: $4,500
Property Plant and Equipment: $75,000
Accumulated Depreciation: ($5,000)
Accounts Payable: $1,707
Current Debt: $10,000
Common Stock: $50,000
Retained Earnings: $24,090
1, what was the contribution margin amount for the Frozen Yogurt shop last year?
2, what was the total assets for the Frozen Yogurt shop at the end of the year?
3, What was the net income for the Frozen Yogurt shop last year?
4, What was the leverage ratio for the Frozen Yogurt shop last year?
5, What was the days of working capital for the Yogurt Shop last year? (rounded to the nearest day)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started