Below are the Income Statement and Balance Sheet for Palmer Corporation for the years ended 2020 and 2021. Calculate the liquidity ratios in the table to the right for the year ended 2021. Palmer Corporation Comparative Income Statement For the Years Ended December 31, 2021 and 2020 2021 2020 Amount Amount Sales $5,750,900 $4,894,800 Cost of goods sold 3,646,700 3,195,600 Gross profit 2,104,200 1,699,200 Selling expenses 775,500 688,700 Administrative expenses 863,900 815,200 Total operating expenses 1,639,400 1,503,900 Income from operations 464,800 195,300 Other income 102,500 84,600 Income before income tax 567,300 279,900 Income tax expense 200,600 101,200 Net income $366,700 $178,700 Palmer Corporation Comparative Balance Sheet As of December 31, 2021 and 2020 2021 2020 Cash $295,300 $175,200 Accounts receivable, net 890,300 820,700 Inventories 605,900 490,600 Prepaid Expenses 125,200 87,800 Total current assets 1,916,700 1,574,300 Fixed assets, net 1,875,000 1,685,800 Total assets $3,791,700 $3,260,100 Accounts payable $435,300 $408,700 Accrued expenses 315,400 280,600 Other current liabilities 465,700 436,900 Total current liabilities 1,216,400 1,126,200 Long-term debt 1,590,300 1,515,600 Common stock 375,000 375,000 Retained earnings 610,000 243,300 Total liabilities & equity $3,791,700 $3,260,100
Below are the Income Statement and Balance Sheet for Palmer Corporation for the years ended 2020 and 2021. Calculate the liquidity ratios in the table to the right for the year ended 2021. Palmer Corporation Comparative Income Statement For the Years Ended December 31, 2021 and 2020 2021 2020 Amount Amount Sales $5,750,900 $4,894,800 Cost of goods sold 3,646,700 3,195,600 Gross profit 2,104,200 1,699,200 Selling expenses 775,500 688,700 Administrative expenses 863,900 815,200 Total operating expenses 1,639,400 1,503,900 Income from operations 464,800 195,300 Other income 102,500 84,600 Income before income tax 567,300 279,900 Income tax expense 200,600 101,200 Net income $366,700 $178,700 Palmer Corporation Comparative Balance Sheet As of December 31, 2021 and 2020 2021 2020 Cash $295,300 $175,200 Accounts receivable, net 890,300 820,700 Inventories 605,900 490,600 Prepaid Expenses 125,200 87,800 Total current assets 1,916,700 1,574,300 Fixed assets, net 1,875,000 1,685,800 Total assets $3,791,700 $3,260,100 Accounts payable $435,300 $408,700 Accrued expenses 315,400 280,600 Other current liabilities 465,700 436,900 Total current liabilities 1,216,400 1,126,200 Long-term debt 1,590,300 1,515,600 Common stock 375,000 375,000 Retained earnings 610,000 243,300 Total liabilities & equity $3,791,700 $3,260,100
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
Related questions
Question
Below are the Income Statement and |
|||||||
for the years ended 2020 and 2021. Calculate the |
|||||||
for the year ended 2021. | |||||||
Palmer Corporation | |||||||
Comparative Income Statement | |||||||
For the Years Ended December 31, 2021 and 2020 | |||||||
2021 | 2020 | ||||||
Amount | Amount | ||||||
Sales | $5,750,900 | $4,894,800 | |||||
Cost of goods sold | 3,646,700 | 3,195,600 | |||||
Gross profit | 2,104,200 | 1,699,200 | |||||
Selling expenses | 775,500 | 688,700 | |||||
Administrative expenses | 863,900 | 815,200 | |||||
Total operating expenses | 1,639,400 | 1,503,900 | |||||
Income from operations | 464,800 | 195,300 | |||||
Other income | 102,500 | 84,600 | |||||
Income before income tax | 567,300 | 279,900 | |||||
Income tax expense | 200,600 | 101,200 | |||||
Net income | $366,700 | $178,700 | |||||
Palmer Corporation | |||||||
Comparative Balance Sheet | |||||||
As of December 31, 2021 and 2020 | |||||||
2021 | 2020 | ||||||
Cash | $295,300 | $175,200 | |||||
Accounts receivable, net | 890,300 | 820,700 | |||||
Inventories | 605,900 | 490,600 | |||||
Prepaid Expenses | 125,200 | 87,800 | |||||
Total current assets | 1,916,700 | 1,574,300 | |||||
Fixed assets, net | 1,875,000 | 1,685,800 | |||||
Total assets | $3,791,700 | $3,260,100 | |||||
Accounts payable | $435,300 | $408,700 | |||||
Accrued expenses | 315,400 | 280,600 | |||||
Other current liabilities | 465,700 | 436,900 | |||||
Total current liabilities | 1,216,400 | 1,126,200 | |||||
Long-term debt | 1,590,300 | 1,515,600 | |||||
Common stock | 375,000 | 375,000 | |||||
Retained earnings | 610,000 | 243,300 | |||||
Total liabilities & equity | $3,791,700 | $3,260,100 | |||||
Note: Enter the calculated values for items 2 through 7 as a formula (example: =Q13/S13) |
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