THIS IS YOUR PRACTICE PROBLEM FROM CLASS.

Practice Question for study and review:

First number is the year 2023 and second is 2022

Net Credit Sales $ 4,000,000 $ 3,200,000

Cost of goods sold 3,250,000 2,600,000

Gross Profit 750,000 600,000

Operating Expenses 300,000 325,000

Operating Income 450,000 275,000

Interest expense 40,000 45,000

Earnings before income taxes 410,000 230,000 Income

Tax expense 82,000 46,000

Net Income $ 328,000 $ 184,000

Balance Sheet

Assets

Cash $ 150,000 $ 80,000

Accounts Receivable 275,000 315,000

Inventory 230,000 200,000

Total current assets $ 655,000 $ 595,000

Plant Property & Equipment 800,000 750,000

Accumulated Depreciation 500,000 425,000

Plant Property & Equipment, Net 300,000 325,000

Total Assets $ 955,000 $ 920,000

Liabilities & Stockholders Equity

Accounts Payable $ 110,000 $ 160,000

Salaries payable 25,000 10,000

Taxes payable 20,000 30,000

Total current liabilities $ 155,000 $ 200,000

Bonds Payable --

Long term Notes Payable 200,000 250,000

Total LT liabilities 200,000 250,000

Total liabilities $ 355,000 $ 450,000

Stockholders Equity

Common stock ($10 par) $ 100,000 $ 100,000

Retained earnings 500,000 370,000

Total Common Stockholders Equity $ 600,000 $ 470,000

Total Liabilities & Stockholders Equity $ 955,000 $ 920,000

Market price per share on December 31 $ 60.00 $ 45.00

Cash dividends paid $ 80,000.00 $ 50,000.00

Shares of common stock outstanding 75,000 75,000

Company, Inc. Income Statement For the years ended December 31:

Financial Statement Analysis

Find the answers to all of the following

Working Capital

Current Ratio

Acid-Test

Accounts Receivable Turnover

Average Collection Period

Inventory Turnover

Average Days to Sell Inventory

Debt Ratio

Debt to Equity Ratio

Times Interest Earned

Gross Margin Percentage

Return on Assets

Return on Common Stockholder's Equity

Earnings per Share

Price Earnings Ratio

Dividend Payout Ratio