Question

The following financial statements were taken from the 2010 annual report of Presentations Company:



Presentations Company
Income Statement
For the Year Ended December 31, 2010

Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,228
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,751
Gross profit on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,477
Operating expenses: Depreciation— buildings and equipment . . . . . . . . . . . . . 102
Other selling and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,667
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,769
Income before interest and taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 708
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 426

Requirements
1. Calculate the following ratios for the year ended December 31, 2010.
a. Debt- to- equity ratio
b. Gross margin percentage
c. Current ratio
d. Profit margin ratio
2. What do the ratios indicate about the success of Presentations? What additional information would help you analyze the overall performance of thiscompany?


$1.99
Sales0
Views61
Comments0
  • CreatedSeptember 01, 2014
  • Files Included
Post your question
5000