MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash $ 50,000 Accounts receivable 70,000 Inventory
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Question:
MEGAFRAME COMPUTER COMPANY | ||
Balance Sheet | ||
As of December 31 | ||
ASSETS | ||
Cash | $ | 50,000 |
Accounts receivable | 70,000 | |
Inventory | 110,000 | |
Net plant and equipment | 220,000 | |
Total assets | $ | 450,000 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | $ | 70,000 |
Accrued expenses | 50,000 | |
Long-term debt | 130,000 | |
Common stock | 70,000 | |
Paid-in capital | 40,000 | |
Retained earnings | 90,000 | |
Total liabilities and stockholders' equity | $ | 450,000 |
MEGAFRAME COMPUTER COMPANY | ||
Income Statement | ||
For the year ended December 31 | ||
Sales (all on credit) | $ | 875,000 |
Cost of goods sold | 600,000 | |
Gross profit | $ | 275,000 |
Sales and administrative expenses | 30,000 | |
Depreciation | 55,000 | |
Operating profit | $ | 190,000 |
Interest expense | 25,000 | |
Profit before taxes | $ | 165,000 |
Taxes (30%) | 49,500 | |
Net income | $ | 115,500 |
Calculate the following ratios:
- Debt Ratio
- Total Asset Turnover
- Average Collection Period
- Price to Earnings ratio if the Market Price is $110 USD today and number of shares issues are 500,000.
- Operating Return on Assets
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078110931
16th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
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