1. Complete the required calculations on this worksheet in the boxes provided. Show your work for 2018 and 2019 as shown for 2020 that has been completed for you. Round all of your answers to 2 decimals. 0 2 Cost of Goods Sold Gross Profit 3 9 ) Sales Cost of Goods Sold Beginning Inventory Add: Purchases 4 Less: Operating Expenses 5 Net Income from Operations (IBIT) 5 Interest Expense Income Before Income Tax 8 Income Tax A Less: Ending Inventory 5 B Net income 5 Balance, January 1 Add: Net Income for the Year Less: Dividend Balance, December 31 B Comparative Income Statements For the years ending December 31 2020 $ 38 151 213 In 2020, market price per share was 251 54 $ $ C 2020 $ $ 53 5 $ 290 S 48 S 197 93 37 56 3 The additional 20 common shares were sold for a total of: 100 48 148 5 The following additional information is available: 4a. All sales are on credit; credit terms are net 60 days after invoice date. 5 b. Number of shares of common stock were outstanding in 2018 Number of shares of common stock were outstanding in 2019 On January 1, 2020, 20 additional shares of common stock were sold. The total number of common stock outstanding is now 60 D 143 c. Opening balance of accounts receivable on January 1, 2018 was d. Net capital assets for January 1, 2018, was e. Total assets on January 1, 2018, was f. Total shareholders' equity on January 1, 2018, was 3g. In 2018, market price per share was 4 In 2019, market price per share was 30 108 $ 138 38 Comparative Statements of Retained Earnings For the Year Ended December 31 2019 $ $ $ $ S 2019 $ $ S $ $ E $ $ $ $ $ $ 210 100 110 34 76 3 73 10 63 40 63 103 3 100 40 40 60 120.00 16.00 256.00 310.00 250.00 3.50 3.00 2.50 F 2018 111 24 78 102 30 $ 150 G 1:11:11 2018 $ 10 40 50 10 S 40 $ The following are condensed financial statements of December 31, 2018, 2019, 2020. Current Assets Cash Accounts Receivable Less: Allowance for Doubtful Accounts Inventories Supplies Comparative Balance Sheets For the years ending December 31 Total Current Assets Capital Assets Less: Accumulated Depreciation Total Assets Current Liabilities Accounts Payable Other Accrued Liabilities Total Current Liabilities Long Term Notes Payable Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2020 $ 25 1 634 97 $ 47 24 54 11 $ 136 537 $ 673 80 30 $ 110 60 $ 170 360 143 $ 503 $ 673 2019 $ 18 or the three years ended 2 375 45 $ 32 $ 16 38 9 95 330 $ 425 12 13 $ 25 60 $ 85 240 100 $ 340 $ 425 2018 $ 12 - 256 27 $ 37 12 30 7 $ 86 229 $ 315 15 20 $ 35 - $ 35 240 40 $ 280 $ 315 1 Current ratio Accounts 3 receivable turnover 2 Quick ratio (47+24)/1100.65:1 4 Days sales uncollected 10 Inventory turnover 8 Debt ratio 12 Total asset turnover 9 Equity ratio Times interest earned 136/1101.24:1 Days' sales in (54/197) x 365 100.05 inventory days 2020 Gross profit ratio 290/[(16+24)/2] 14.5 times (24/290) x 365 = 30.21 days 197/[(38+54)/2] 4.28 times 290/[(673+425)/2] = 0.53 times (170/673) x 100% = 25.26% (503/673) x 100% = 74.74% 11 Profit margin (48/290) x 100% 16.55% 56/3 18.67 times (93/290) x 100% - 32.07% 13 Return on total 48/[(425+673)/2] x 100% = assets 8.74% 2019 2018 Return on 14 common S/E equity 15 Earings per share 48/[(340+503)/2] x 100% = 11.39% 48/60 $0.80 16 Price-earings 2.50/.8= 3.13 per share 17 Dividend yield [(5/60)/2.50] x 100% = 3.33%