The list of accounts and balances for Clark Industries at March 31, 2013, are presented next:
Sales Revenue ........ $275,100
Equipment ......... 27,000
Accounts Payable ....... 16,500
Sales Discounts ........ 2,500
Advertising Expense ...... 11,500
Interest Expense ........ 700
Wages Payable ......... 1,000
Accounts Receivable ...... 8,800
Building .......... 190,000
Sales Returns and
Allowances ......... 4,900
Common Shares ........ 35,000
Utilities Expense ....... 14,000
Inventory ......... 29,000
Commission Expense ..... 31,700
Supplies ........... 1,200
Cost of Goods Sold ....... $119,000
Accumulated Depreciation,
Equipment ......... 13,000
Unearned Sales Revenue .... 2,500
Prepaid Rent ........ 5,000
Office Salaries Expense .... 54,000
Accumulated Depreciation,
Building ........... 52,500
Rent Expense ......... 5,200
Dividends .......... 12,000
Cash ........... 22,500
Retained Earnings ....... 112,800
Delivery Expense ...... 1,200
Insurance Expense ...... 10,200
Mortgage Payable
(Long-Term) ......... 42,000
Requirements
1. Calculate the gross profit percentage for Clark Industries for the year.
2. The gross profit percentage for 2012 was 39.1%. Did the gross profit percentage improve or deteriorate during 2013?
3. Calculate the current ratio for Clark Industries.
4. The current ratio for 2012 was 2.33. Did the current ratio improve or deteriorate during 2013?