Compute four ratios that measure the ability to earn profits for Gardener Farm Supplies Ltd., whose comparative
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Did the company's operating performance improve or deteriorate during 2014?
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GARDENER FARM SUPPLIES LTD Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 $174,000 Net sales Cost of goods sold Gross margin Selling and general expenses Income from operations Interest expense Income before income tax Income tax expense Net income $195,000 101,500 93,500 50,200 43,300 25,400 17,900 91,750 82,250 40,000 42,250 12,050 30,200 7,550 4475 $ 13425 $ 22,650 Additional data a. Average total assets b. Average common shareholders' equity c. Preferred dividends d. Number of common shares outstanding 2014 102,000 25,000 2013 S230,000 2000 98,000 5,000 25,000 5,000
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a Rate of return on net sales 2014 13425 69 195000 2013 22650 130 ...View the full answer
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Related Book For
Accounting
ISBN: 978-0132690089
9th Canadian Edition volume 2
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
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