The income statement, statement of retained earnings, and balance sheet for Jeanette Company are as follows: Required:
Question:
The income statement, statement of retained earnings, and balance sheet for Jeanette Company are as follows:
Required:
Calculate the return on sales. Round the answer to one decimalplace.
Transcribed Image Text:
Jeanette Company Income Statement For the Year Ended December 31, 2010 Amount $ 8,281,989 $ 2,898,696 $1,575,328 1,525,328 $ 915,197 Percent Net sales Less: Cost of goods sold 100.0% Less: Operating expenses Less: Interest expense Less: Taxes (40%)* Gross margin Operating income Net income before taxes Net income (5,383.293)65.0 35.0 (1.323,368) 16.0 19.0 (50,000) 0.6 18.4 7.4 11.0 610,131) Includes both state and federal taxes Jeanette Company Statement of Retained Earnings For the Year Ended December 31, 2010 Balance, beginning of period Net income $1,979,155 915,197 $2,894,352 (80,000) Total Less: Preferred dividends Dividends to common stockholders (201 Balance, end of period $2,612,465 Jeanette Company Comparative Balance Sheets For the Years Ended December 31, 2009 and 2010 2010 2009 Assets Current assets: Cash Marketable securities Accoun Inventories Other $2,875,000 800,000 939,776 490,000 93,000 $5,197,776 $2,580,000 700,000 690,000 260,000 74 261 $4,304,261 ts receivable (net) Total curent assets Property and equipment Land Building and equipment (net) $1,067,315 1,150,000 $1,575,000 1,348,800 $2,923,800 $8,121,576 Total long-term assets Total a ssets $6,521,576 Liabilities and Stockholders' Equity Current liabilities: Notes payable, short tem Accounts payable Cur $1,170,127 298,484 3,000 200,000 $1,671,611 $ 543,641 101,500 2,000 57,780 $ 704,921 rent maturity of long-term debt Accrued payables Long-term liabilities: Total liabilities Stockholders' equity: Total current liabilities Bonds payable, 10% 500,000 500,000 $2,171,611 Preferred stock, $25 par, 8% Common stock, $1.50 par Additional paid-in capital* Retained earnings $1,000,000 337,500 2,000,000 2,612,465 $5,949,965 $8,121,576 $1,000,000 337,500 2,000,000 1,979,155 Total equity Total liabilities and stockholders' equity For common stock anly. $6,521,576
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Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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