Liabilities and Stockholders' Equity Accounts payable Notes payable.. Accrued taxes 130,000 120,000 30,000 280,000 Total current abilities Long-term lubilities Bonds payable Total abilities.. Stockholders' equity Pretend stock, $100 par value Common stock, $5 par value Capital paid in excess of par.. Retained earnings. 150,000 50,000 Total stockholders' equity 620.000 Total abilities and stockholders' equity $1,100,000 GILLIAM CORPORATION Income Statement For the Year Ending December 31, 200X $2,400,000 1,600.000 Sales (on credit) Less Cost of goods sold.. Gross profit Less: Selling and administrative expenses Operating profit (EBIT.. Less: Interest expense 560.000 240,000 30,000 210,000 Earnings before taxes (EBT) Loss: Thes 75,000 Earnings after taxes (EAT). $135,000 

Required: 

For each business, calculate two ratios that are concerned with each of the following aspects: 

■profitability 

■efficiency liquidity gearing 

■investment (ten ratios in total

Answer rating: 100% (QA)

Profitability Gross Profit Margin Sales Cost of Goods Sold Sales 2400000 1600000 2400000 Gross Profit Margin 25 or 25 Operating Profit Margin Operating Profit Sales 210000 2400000 Operating Profit Mar... View the full answer