Question
Use the statements below to answer the questions that follow: Income Statement for the Year Ended, December 31, 2015 Sales 150,000 Expenses Cost of Goods
Use the statements below to answer the questions that follow:
Income Statement for the Year Ended, December 31, 2015
Sales | 150,000 |
Expenses |
|
Cost of Goods Sold | 80,000 |
Operating Expenses | 30,000 |
Interest | 8,000 |
Income Tax | 13,000 |
Total Expenses | 131,000 |
Net Operating Income | 19,000 |
Other Income |
|
Gain on Sale of Equipment | 10,000 |
Net income | 29,000 |
Balance Sheet
| Dec 31, 2015 |
| Dec 31, 2014 |
Assets |
|
|
|
Current Assets |
|
|
|
Cash | 95,000 |
| 78,000 |
Accounts Receivable | 60,000 |
| 82,000 |
Finished Goods | 25,000 |
| 50,000 |
Materials Inventory | 110,000 |
| 80,000 |
Total Current Assets | 290,000 |
| 290,000 |
Plant and Equipment |
|
|
|
Plant and Equipment | 100,000 |
| 95,000 |
Allowance for Depreciation | 20,000 |
| 18,000 |
Total Plant and Equipment | 80,000 |
| 77,000 |
Total Assets | 370,000 |
| 367,000 |
Liabilities |
|
|
|
Current |
|
|
|
Accounts Payable | 150,000 |
| 60,000 |
Notes Payable | 20,000 |
| 30,000 |
Taxes Payable | 8,000 |
| 13,000 |
Total Current | 78,000 |
| 103,000 |
Long-tem |
|
|
|
Bonds Payable | 150,000 |
| 90,000 |
Total Liabilities | 250,000 |
| 190,000 |
Stockholders' Equity |
|
|
|
Common Stock | 100,000 |
| 120,000 |
Retained Earnings | 12,000 |
| 44,000 |
Total Equity | 112,000 |
| 164,000 |
Total Liability and Equity | 370,000 |
| 367,000 |
Based on the above financial statements, compute the following ratios for the year 2015:
Gross Profit Margin (%)
Operating Profit Margin (%)
Return on Total Assets (ROA) (%)
Current Ratio
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