Sales (all on credit). Cost of goods sold.. Gross profit... Selling and administrative expense.. Amortization.... Opening...

Transcribed Image Text:

Sales (all on credit). Cost of goods sold.. Gross profit... Selling and administrative expense.. Amortization.... Opening profit. Interest expense.. Earnings before taxes.. Taxes.... Wizard Industry Income Statement Year ended 2015 $1,605,100 1,258,900 346,200 265,650 Eamings available to common shareholders... Dividends declared.. ******* 14,000 66,500 65,100 1,450 350 $1,100 $ 70,000 2014 $1,841,300 1.397,400 443,900 256,850 14,400 172,650 50,550 122,100 27,100 95,000 65,000 2013 $1,542,700 1.174,800 367,900 294,200 16,000 57,700 50,100 7,600 2,200 5,400 60,000 Cash Marketable securities. Account receivable. Inventory... Prepaid expense. Total current assets. Net plant and equipment. Goodwill.. Assets Total assets. Liabilities and Shareholder's Equity Account payable. Band loan. Accrued expense... Total current liabilities. Long term debt. Total liabilities. Common stock. Retained earnings.. Total shareholder's equity Total liabilities and shareholder's equity. Selected Industry ratios Profit margin.... Return on assets (investment). Return on equity... Receivables turnover.. Average collection period. Inventory turnover... Capital asset turnover. Current ratio. Total asset turnover.. Quick ratio..... Wizard Industry Balance Sheet December 31, Debt to total assets. Times interest earned.. 5.8% .20.3% .4.3 x 1.6 2015 $14,900 $145,900 254,000 3.200 403,600 225,800 629,400 14,000 8.1% .6.3 x 58.3 day 1.1 7,000 410,800 256,600 5.200 694,500 162,000 25,400 $881,900 238,500 252.500 $881,900 .8.0 x 1.7 x 60% 4.3 x Instructions: Compute the 13 basic ratios for the three years. 2014 $24,700 7,000 361,800 330,000 800 724,300 172,900 28,200 $925,400 $196,700 95,000 23.200 422,400 181,600 604,000 14,000 2013 $11,500 7,000 297,300 289,900 5.500 611,200 184,300 30,600 $826,100 $209,700 169,000 14.400 393,100 141,000 534,100 14,000 278,000 292,000 307,400 321,400 $925,400 $826,100 Sales (all on credit). Cost of goods sold.. Gross profit... Selling and administrative expense.. Amortization.... Opening profit. Interest expense.. Earnings before taxes.. Taxes.... Wizard Industry Income Statement Year ended 2015 $1,605,100 1,258,900 346,200 265,650 Eamings available to common shareholders... Dividends declared.. ******* 14,000 66,500 65,100 1,450 350 $1,100 $ 70,000 2014 $1,841,300 1.397,400 443,900 256,850 14,400 172,650 50,550 122,100 27,100 95,000 65,000 2013 $1,542,700 1.174,800 367,900 294,200 16,000 57,700 50,100 7,600 2,200 5,400 60,000 Cash Marketable securities. Account receivable. Inventory... Prepaid expense. Total current assets. Net plant and equipment. Goodwill.. Assets Total assets. Liabilities and Shareholder's Equity Account payable. Band loan. Accrued expense... Total current liabilities. Long term debt. Total liabilities. Common stock. Retained earnings.. Total shareholder's equity Total liabilities and shareholder's equity. Selected Industry ratios Profit margin.... Return on assets (investment). Return on equity... Receivables turnover.. Average collection period. Inventory turnover... Capital asset turnover. Current ratio. Total asset turnover.. Quick ratio..... Wizard Industry Balance Sheet December 31, Debt to total assets. Times interest earned.. 5.8% .20.3% .4.3 x 1.6 2015 $14,900 $145,900 254,000 3.200 403,600 225,800 629,400 14,000 8.1% .6.3 x 58.3 day 1.1 7,000 410,800 256,600 5.200 694,500 162,000 25,400 $881,900 238,500 252.500 $881,900 .8.0 x 1.7 x 60% 4.3 x Instructions: Compute the 13 basic ratios for the three years. 2014 $24,700 7,000 361,800 330,000 800 724,300 172,900 28,200 $925,400 $196,700 95,000 23.200 422,400 181,600 604,000 14,000 2013 $11,500 7,000 297,300 289,900 5.500 611,200 184,300 30,600 $826,100 $209,700 169,000 14.400 393,100 141,000 534,100 14,000 278,000 292,000 307,400 321,400 $925,400 $826,100

Answer rating: 100% (QA)

Profitability Ratios Profit Margin Gross Profit Sales 100 2013 367900 1542700 100 238 2014 443900 18... View the full answer