RNA Inc. manufactures a variety of consumer products. The company's founders have run the company for 30
Question:
RNA
Income Statement
For the Year Ended November 30, 2019
(in thousands)
Sales (net)....................................................¬30,500
Interest income...................................................500
Total revenue..................................................31,000
Costs and expenses
Cost of goods sold...........................................17,600
Selling and administrative expenses........................3,550
Depreciation and amortization expense.....................1,890
Interest expense..................................................900
Total costs and expenses....................................23,940
Income before taxes..........................................7,060
Income taxes...................................................2,800
Net income...................................................¬ 4,260
Instructions
a. Calculate a new set of ratios for the fiscal year 2019 for RNA based on the financial statements presented.
b. Explain the analytical use of each of the six ratios presented, describing what the investors can learn about RNA's financial stability and operating efficiency.
c. Identify two limitations of ratio analysis.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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