Question

4 Cost of goods sold 2.3 1.2 30 days 68 days 0.65 5.7 ty ratio earned ratio 2. Present the income statement in K Prev 4 of 5 Next > ts net 0.0 0.01% 0.0 0.0 0.01% 001%

Answer 1

1	Common size Balance sheet
	Assets	This year	percentage	Last year	percentage
	Current assets
	Cash	960000	5.61%	1260000	8.47%
	Marketable securities	0	0.00%	300000	2.02%
	Accounts receivable (net)	2700000	15.79%	1800000	12.10%
	Inventory	3900000	22.81%	2400000	16.13%
	Prepaid expense	240000	1.40%	180000	1.21%
	Total Current assets	7800000	45.61%	5940000	39.92%
	Property and equipment net	9300000	54.39%	8940000	60.08%
	Total assets	17100000	100.00%	14880000	100.00%
	Liabilities
	Current liabilities	3900000	22.81%	2760000	18.55%
	Notes payable 10%	3600000	21.05%	3000000	20.16%
	Total liabilities	7500000	43.86%	5760000	38.71%
	Stockholders equity				0.00%
	Common stock $78 par value	7800000	45.61%	7800000	52.42%
	Retained earnings	1800000	10.53%	1320000	8.87%
	Total stockholders equity	9600000	56.14%	9120000	61.29%
	Total liabilities and stockholders equity	17100000	100.00%	14880000	100.00%
2	Common size income statement	This year	%	Last year	%
	Sales	15750000	100.0%	12480000	100.0%
	Cost of goods sold	12600000	80.0%	9900000	79.3%
	Gross margin	3150000	20.0%	2580000	20.7%
	Selling and admin expense	1590000	10.1%	1560000	12.5%
	Net operating income	1560000	9.9%	1020000	8.2%
	Interest expense	360000	2.3%	300000	2.4%
	Net income before taxes	1200000	7.6%	720000	5.8%
	Income taxes 30%	360000	2.3%	216000	1.7%
	Net income	840000	5.3%	504000	4.0%