Use the following information for Questions 6-10. Sales COGS Income Statement 2012 2013 2014 675,000 650,000...

 

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Use the following information for Questions 6-10. Sales COGS Income Statement 2012 2013 2014 675,000 650,000 600,000 330,000 370,000 375,000 345,000 280,000 225,000 165,000 175,000 180,000 Gross profit Operating expenses Depreciation Operating income Interest exp. 20,000 15,000 10,000 160,000 90,000 35,000 10,000 7,500 5,000 EBT Taxes 150,000 $2,500 30,000 60,000 33,000 12,000 90,000 49,500 18,000 Net Income Balance Sheet Cash 2012 650,000 2013 350,000 2014 200,000 Accounts receivable 275,000 300,000 515,000 Inventories Current Assets 100,000 100,000 200,000 1,025,000 1,005,000 915,000 Net fixed assets 1,000,000 1,100,000 900,000 Total Assets 2,025,000 1,850,000 1,815,000 Notes payable 125,000 150,000 200,000 Accounts payable 100,000 90,000 115,000 Accruals 90,000 100,000 25,000 Current Liabilities 315,000 340,000 340,000 Long-term debt 875,000 1,000,000 1,200,000 Total Liabilities 1,190,000 1,340,000 1,540,000 Common stock @ ($0.25 par) 30.000 25,000 25,000 Additional paid in capital 505,000 200,000 200,000 Retained earnings 300,000 285,000 50,000 Total Liabilities & Equity 2,025,000 1,850,000 1,815,000 6. What is the firm's gross profit margin in 2013? 7. What is the firm's days inventory in 2012? 8. What is the firm's debt to assets ratio in 2014? 9. What is the firm's current ratio in 2012? Use the following information for Questions 6-10. Sales COGS Income Statement 2012 2013 2014 675,000 650,000 600,000 330,000 370,000 375,000 345,000 280,000 225,000 165,000 175,000 180,000 Gross profit Operating expenses Depreciation Operating income Interest exp. 20,000 15,000 10,000 160,000 90,000 35,000 10,000 7,500 5,000 EBT Taxes 150,000 $2,500 30,000 60,000 33,000 12,000 90,000 49,500 18,000 Net Income Balance Sheet Cash 2012 650,000 2013 350,000 2014 200,000 Accounts receivable 275,000 300,000 515,000 Inventories Current Assets 100,000 100,000 200,000 1,025,000 1,005,000 915,000 Net fixed assets 1,000,000 1,100,000 900,000 Total Assets 2,025,000 1,850,000 1,815,000 Notes payable 125,000 150,000 200,000 Accounts payable 100,000 90,000 115,000 Accruals 90,000 100,000 25,000 Current Liabilities 315,000 340,000 340,000 Long-term debt 875,000 1,000,000 1,200,000 Total Liabilities 1,190,000 1,340,000 1,540,000 Common stock @ ($0.25 par) 30.000 25,000 25,000 Additional paid in capital 505,000 200,000 200,000 Retained earnings 300,000 285,000 50,000 Total Liabilities & Equity 2,025,000 1,850,000 1,815,000 6. What is the firm's gross profit margin in 2013? 7. What is the firm's days inventory in 2012? 8. What is the firm's debt to assets ratio in 2014? 9. What is the firm's current ratio in 2012?

Answer rating: 100% (QA)

6 Gross profit margin in 2013 can be calculated using the formula Gross Profit Margin Gross Profit S... View the full answer