Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Policies Current Attempt in Progress Pharoah Medical manufactures hospital beds and other institutional furniture, The company's comparative balance sheet and income statement for 2019

image text in transcribed
View Policies Current Attempt in Progress Pharoah Medical manufactures hospital beds and other institutional furniture, The company's comparative balance sheet and income statement for 2019 and 2020 follow. Pharoah Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $386,000 $417,400 Accounts receivable, net 1,057,000 776,400 Inventory 750,000 681,050 Other current assets 381,350 247,050 Total current assets 2,574,350 2121.900 Property, plant, & equipment, net 8,641,555 8,440,160 Total assets $11,215,905 $10,562,060 Liabilities and Stockholders' Equity Current liabilities $3,155,000 32846100 Long-term debt 3,702,700 3,892,650 Total liabilities 6,857,700 6,738,750 Preferred stock. $5 parvalue 59,000 59,000 Common stock, $0.25 par value 104,650 103,900 Retained earnings 4,194,555 3,660,410 Total stockholders' equity 4,358,205 3,823,310 Total liabilities and stockholders' equity $11.215,905 $10,562,060 Pharoah Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,300 $9,613,900 Cost of goods sold 5,612,400 5,298,300 Gross prot 4,564,900 4,315,100 Operating expenses 2,840,200 2,634,150 Net operating income 1,724,700 1,680,950 Interest expense 300,350 308,650 Net income before taxes 1,424,350 1,372,300 Income taxes (30%) 427,305 411,690 Net income $997,045 $960,610 Dividends paid Preferred dividends 29,450 29,450 Question 7of8 /8 E Retained earnings, end of year $4,194,555 $3,660,410 Calculate the following protability ratios for 2020. {Round answers to 1 decimalplace, (-1.3. 50.1%.) . % a Gross margin percentage b. Return on assets % % c, Return on common stockholders' equity eTextbook and Media Save for Later Last saved 9 minutes ago, Attempts: 0 of 3 used Saved work will be auto-submitted on the due date, Auto- submission can take up to 10 minutes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting An IFRS Standards Approach

Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah

4th Edition

9789814821278, 9814821276

More Books

Students also viewed these Accounting questions

Question

Food supply

Answered: 1 week ago

Question

Mortality rate

Answered: 1 week ago