Compute four ratios that measure the ability to earn profits for Jarvis Decor, Inc., whose comparative income
Question:
Compute four ratios that measure the ability to earn profits for Jarvis Decor, Inc., whose comparative income statements follow:
Additional data:
Did the company’s operating performance improve or deteriorate during2010?
Transcribed Image Text:
Jarvis Decor, Inc. Comparative Income Statements Years Ended December 31, 2010 and 2009 2010 2009 $254,000 $217,000 Cost of goods sold... 125,000 111,000 Gross profit.129,000 106,000 Selling and general expens50,000 46,000 60,000 6,000 54,000 5,000 19000 ....$47,000 35,000 Net sale.. Income from operations79,000 Interest expense. Income before income tax Income tax expense. Net income.. 7,000 72,000 2010 2009 2008 Total Common stockholders' equity$106,000 $104,000 $102,000 Preferred dividend 17,000 S 15,000 $ 13,000 Common shares outstanding assets.... $249,000 $239,000 $227,000 during the year 19,000 17,000 11,000
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Dollars in thousands a Rate of return on net sales 2010 47000 0185 2009 3...View the full answer
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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