College Shop Comparative Income Statement Years Ended December 31, 20X7 and 20X6 [Using vertical percentage analysis showing each item as a % of sales] 12/31/20X7 12/31/20X6 Amount Percent Amount Percent Sales 5600 000 100 5500 000 100 Less Cost of goods sold 387.000 Gross profit 213,000 275,000 225,000 Less Operating expenses 180.000 operating income 33.000 30 175,000 50.000 3) Less Interest Less income taxes 10.000 5,000 10,000 10,000 2 Net incom $18,000 3% $30,000 The College Shop Comparative Balance Sheet As of December 31, 207 and 206 12/31/20X7 12/31/20X6 Assets Current assets Cash Accounts receivable Inventory Totalcurrent assets $76.000 92.000 110.000 278.000 570.000 90,000 80,000 240.000 Long-term assets Furniture, equipment, net of depreciation 90.000 120.000 Total Assets 368,000 $360,000 Liabilities and Owner's equity Current liabilities Accounts navable Long-term liabilities oan Total Liabilities Owner's equity $70,000 80,000 100,000 170.000 198,000 100,000 180,000 180,000 Total Liabilities and Owner's equitv $368.000 $360.000 Q1) Calculate the following ratios: Net Profit Ratio Gross Profit Ratio Cost of Sales Ratio Current Ratio Quick Ratio

Answer rating: 100% (QA)

To calculate the requested ratios we will use the information provided in the income statement and b... View the full answer