Instructions: Using the financial statements below, compute the following ratios for 2014 only: Current Ratio, Debt to total Assets, Gross Profit Rate, Profit Margin, Return on Assets, and Return on Common Stockholder's Equity. Enter your computations in the yellow boxes following the format in the example.
COOKIE & COFFEE CREATIONS INC.							EXAMPLE:
Income Statement							Name of Ratio	=	1,234	=	1.00
For the Year Ended October 31							Ratio		1,234
			2014	2013			Your Answers (2014):
Sales			$485,625	$462,500			Current	=	39,271	=	0.82
Cost of goods sold			222,694	208,125			Ratio		47,689
Gross profit			262,931	254,375
Operating expenses							Debt to	=	53,689	=	0.46
Salaries & wages expense			147,979	146,350			Total Assets		116,071
Depreciation expense			17,600	9,100
Other operating expenses			48,186	42,925			Gross Profit	=		=
Total operating expenses			213,765	198,375			Rate
Income from operations			49,166	56,000
Other expenses							Profit	=		=
Interest expense			413	0			Margin
Loss on sale of computer
equipment			2,500	0			Return on	=		=
Total other expenses			2,913	0			Assets
Income before income tax			46,253	56,000
Income tax expense			9,251	14,000
Net income			$37,002	$42,000			Return on common	=		=
							Stockholder's Equity
COOKIE & COFFEE CREATIONS INC.							NOTE: Dividends on preferred stock were $18,000 in 2014
Balance Sheet
October 31, 2012
Assets			2014	2013
Cash			$22,324	$5,550
Accounts Receivable			3,250	2,710
Inventory			7,897	7,450
Prepaid Expenses			5,800	6,050
Equipment			102,000	75,500
Accumulated depreciation			(25,200)	(9,100)
Total assets			$116,071	$88,160
Liabilities and Stockholders' Equity
Accounts Payable			9,251	7,200
Income taxes payable			27,000	27,000
Salaries payable			7,250	1,280
Interest payable			188	0
Note payable - current portion			4,000	0
Note payable - long-term portion			6,000	0
Preferred stock, no par, $6 cumulative - 3,000 and 2,800 shares issued, respectively			15,000	14,000
Common stock, $1 par - 25,180 shares issued			25,180	25,180
Additional paid-in capital - treasury stock			250	250
Retained earnings			20,802	10,800
Total liabilities and stockholders' equity			$116,071	$88,160