tables, compute the required ratios list on the ratio analysis
sheet and then complete the horizontal and vertical analyses
worksheets."
- Case Study 4using The Financial Information In The Following Tables Compute The Required Ratios List On The Ratio Anal 1 (303.19 KiB) Viewed 17 times
Sales Cost of goods sold Gross profit EXPENSES Advertising Depreciation Bad debts Legal Miscellaneous Rent Repairs and maintenance Salaries and wages Utilities Total expenses Net income before income tax Income tax expense NET INCOME Number of shares of stock outstanding ABC COMPANY INCOME STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2018 2018 $1,572,134 $601,215 $970,919 $555,153 21,442 20,151 17,261 91,014 148,321 14,315 47,121 15,912 $430,690 $540,229 216,092 $324,137 35,913 2017 $1,413,581 556,721 $856,860 $50,531 21,442 18,934 10,207 31,214 142,078 13,642 45,312 15,643 $349,003 $507,857 203,143 $304,714 26,786 2016 $1,158,417 500,702 $657,715 $42,150 21,442 17,943 9,701 29,104 141,143 11,932 39,142 14,217 $326,774 $330,941 132,376 $198,565 23,712
Sales Cost of goods sold Gross profit EXPENSES Advertising Depreciation Bad debts Legal Miscellaneous Rent Repairs and maintenance Salaries and wages Utilities Total expenses Net income before income tax Income tax expense NET INCOME ABC COMPANY INCOME STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2018 2018 2017 $1,572,134 $1,413,581 601,215 556,721 $970,919 $856,860 $55,153 $50,531 21,442 21,442 20,151 18,934 17,261 10,207 91,014 31,214 148,321 142,078 14,315 13,642 47,121 45,312 15,912 15,643 $430,690 $349,003 $540,229 $507,857 216,092 203,143 $324,137 $304,714 $ CHANGE % CHANGE
LIQUIDITY RATIOS: Current ratio Current assets/Current liabilities Quick ratio (Current assets - Inventory)/Current liabilities Accounts receivable turnover Sales/Average accounts receivable Days' sales in accounts receivable 365/Accounts receivable turnover Inventory turnover Cost of goods sold/Average inventory PROFITABILITY/PERFORMANCE RATIOS: Profit margin Net income/Net sales Gross profit margin (%) Gross profit/Sales Earnings per share Net income/Number of shares of stock Sales/Total assets Sales/Total assets Sales/Working capital Sales/(Current assets - Current liabilities) EQUITY POSITION RATIOS: Owners' equity/Total assets Total stockholders' equity/Total assets Current liabilities/Owners' equity Current liabilities/Total stockholders' equity Total liabilities/Owners' equity Total liabilities/Total stockholders' equity ABC COMPANY RATIO ANALYSIS DECEMBER 31, 2018 12/31/18 12/31/17 Change % Change
ASSETS Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Accumulated depreciation TOTAL ASSETS LIABILITIES Current liabilities Accounts payable Accrued liabilities Income taxes payable Current portion of long-term debt Total current liabilities Long-term liabilities Long-term debt TOTAL LIABILITIES STOCKHOLDERS' EQUITY Common stock Additional paid-in capital Retained earnings Total stockholders' equity TOTAL LIABILITIES AND STOCK- HOLDERS' EQUITY 2018 $501,992 335,272 515,174 251,874 $1,604,312 765,215 (218,284) $2,151,243 $248,494 122,192 10,645 42,200 $423,531 425,311 $848,842 $370,124 29,546 902,731 $1,302,401 $2,151,243 ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 % TOTAL ASSETS 2017 $434,215 302,514 505,321 231,100 $1,473,150 735,531 (196,842) $2,011,839 $366,864 216,533 25,698 42,200 $651,295 400,311 $1,051,606 $356,758 24,881 578,594 $960,233 $2,011,839 % TOTAL ASSETS 2016 $375,141 241,764 310,885 136,388 $1,064,178 705,132 (175,400) $1,593,910 $322,156 215,474 22,349 42,200 $602,179 375,100 $977,279 $320,841 21,910 273,880 $616,631 $1,593,910 % TOTA ASSETS