Compute four ratios that measure the ability to earn profits for Harmon Decor, Inc., whose comparative income
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Did the companys operating performance improve or deteriorate during2010?
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Harmon Decor, Inc. Comparative Income Statements Years Ended December 31, 2010 and 2009 2010 2009 $100,000 $90,000 53,000 46,000 47,000 44,000 Selling and general expenses20,000 18,000 27,000 26,000 Interest expens3000 2,000 24,000 24,000 7,000 S 16,000 $17,000 Net sales Cost of goods sold.. Gross profit. Income from operations Income tax expense... .. 8,000 2010 2009 2008 Total assets $104,000 $100,000 $83,000 Common stockholders' equity.$ 72,000 70,000 $69,000 3,000 2,000 1,000 Preferred dividends Common shares outstanding during the year 10,000 9,000 4,000
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Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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