Income Statement Revenue Cost of Goods Sold Gross Profit Operating Expenses 2013 2014 2015 2016 $27,750...

Transcribed Image Text:

Income Statement Revenue Cost of Goods Sold Gross Profit Operating Expenses 2013 2014 2015 2016 $27,750 $45,750 $55,000 $70,000 $10,125 $5,000 $7,500 $12,500 $17,625 $40,750 $47,500 $57,500 $3,250 $11,500 $15,250 $17,500 $14,375 $29,250 $32,250 $40,000 Net Income Balance Sheet 2013 2014 2015 2016 Assets Cash $125 $0 Accounts Rable $5,600 $4,925 $750 58,250 $8.750 $1,250 Total Assets $5,725 $4,925 $9,000 $10,000 Liabilieis Accounts Payable $0 $0 $225 $350 Debt - Credit Card $4,625 $2,575 $8.250 $8.750 Total Liabilities $4,625 $7,575 $8,475 $9,100 Equity Paid In Capital Retained Earnings Total Equity Total Liabilities and STE $1,100 $5,725 $1,000 $1,000 $1,000 $100 $3.650 -$475 -$2.650 $4,925 $1,000 $100 $525 $9,000 $10,000 $900 1. Calculate two (2) ratios for the company. (See page 512-513). Next to your calculation interpret what the ratio means about Sam's business. (Be clear here so that your fellow classmates learn from your analysis). 2. What do you think happens to all of that net income Sam is generating? Income Statement Revenue Cost of Goods Sold Gross Profit Operating Expenses 2013 2014 2015 2016 $27,750 $45,750 $55,000 $70,000 $10,125 $5,000 $7,500 $12,500 $17,625 $40,750 $47,500 $57,500 $3,250 $11,500 $15,250 $17,500 $14,375 $29,250 $32,250 $40,000 Net Income Balance Sheet 2013 2014 2015 2016 Assets Cash $125 $0 Accounts Rable $5,600 $4,925 $750 58,250 $8.750 $1,250 Total Assets $5,725 $4,925 $9,000 $10,000 Liabilieis Accounts Payable $0 $0 $225 $350 Debt - Credit Card $4,625 $2,575 $8.250 $8.750 Total Liabilities $4,625 $7,575 $8,475 $9,100 Equity Paid In Capital Retained Earnings Total Equity Total Liabilities and STE $1,100 $5,725 $1,000 $1,000 $1,000 $100 $3.650 -$475 -$2.650 $4,925 $1,000 $100 $525 $9,000 $10,000 $900 1. Calculate two (2) ratios for the company. (See page 512-513). Next to your calculation interpret what the ratio means about Sam's business. (Be clear here so that your fellow classmates learn from your analysis). 2. What do you think happens to all of that net income Sam is generating?

Answer rating: 100% (QA)

Ratio Analysis for Sams Business 20132016 Based on the provided income statement and balance sheet information for Sams business from 2013 to 2016we c... View the full answer