LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 19,600 $ 15,450 Sales returns and allowances 1,000 100 Net sales $ 18,600 $ 15,350 Cost of merchandise (goods) sold 11,850 8,850 Gross profit $ 6,750 $ 6,500 Operating expenses: Depreciation $ 760 $ 630 Selling and administrative 2,650 2,300 Research 610 530 Miscellaneous 420 330 Total operating expenses $ 4,440 $ 3,790 Income before interest and taxes $ 2,310 $ 2,710 Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 12,300 $ 9,300 Accounts receivable 16,800 12,800 Merchandise inventory 8,800 14,300 Prepaid expenses 24,300 10,300 Total current assets $ 62,200 $ 46,700 Plant and equipment: Building (net) $ 14,800 $ 11,300 Land 13,800 9,300 Total plant and equipment $ 28,600 $ 20,600 Total assets $ 90,800 $ 67,300 Liabilities Current liabilities: Accounts payable $ 13,300 $ 7,500 Salaries payable 7,300 5,300 Total current liabilities $ 20,600 $ 12,800 Long-term liabilities: Mortgage note payable 22,300 20,800 Total liabilities $ 42,900 $ 33,600 Stockholders’ Equity Common stock $ 21,500 $ 21,200 Retained earnings 26,400 12,500 Total stockholders’ equity $ 47,900 $ 33,700 Total liabilities and stockholders’ equity $ 90,800 $ 67,300 Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.)
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 19,600 $ 15,450 Sales returns and allowances 1,000 100 Net sales $ 18,600 $ 15,350 Cost of merchandise (goods) sold 11,850 8,850 Gross profit $ 6,750 $ 6,500 Operating expenses: Depreciation $ 760 $ 630 Selling and administrative 2,650 2,300 Research 610 530 Miscellaneous 420 330 Total operating expenses $ 4,440 $ 3,790 Income before interest and taxes $ 2,310 $ 2,710 Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 12,300 $ 9,300 Accounts receivable 16,800 12,800 Merchandise inventory 8,800 14,300 Prepaid expenses 24,300 10,300 Total current assets $ 62,200 $ 46,700 Plant and equipment: Building (net) $ 14,800 $ 11,300 Land 13,800 9,300 Total plant and equipment $ 28,600 $ 20,600 Total assets $ 90,800 $ 67,300 Liabilities Current liabilities: Accounts payable $ 13,300 $ 7,500 Salaries payable 7,300 5,300 Total current liabilities $ 20,600 $ 12,800 Long-term liabilities: Mortgage note payable 22,300 20,800 Total liabilities $ 42,900 $ 33,600 Stockholders’ Equity Common stock $ 21,500 $ 21,200 Retained earnings 26,400 12,500 Total stockholders’ equity $ 47,900 $ 33,700 Total liabilities and stockholders’ equity $ 90,800 $ 67,300 Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.8MCP
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Question
LOGIC COMPANY | |||||||
Comparative Income Statement | |||||||
For Years Ended December 31, 2017 and 2018 | |||||||
2018 | 2017 | ||||||
Gross sales | $ | 19,600 | $ | 15,450 | |||
Sales returns and allowances | 1,000 | 100 | |||||
Net sales | $ | 18,600 | $ | 15,350 | |||
Cost of merchandise (goods) sold | 11,850 | 8,850 | |||||
Gross profit | $ | 6,750 | $ | 6,500 | |||
Operating expenses: | |||||||
$ | 760 | $ | 630 | ||||
Selling and administrative | 2,650 | 2,300 | |||||
Research | 610 | 530 | |||||
Miscellaneous | 420 | 330 | |||||
Total operating expenses | $ | 4,440 | $ | 3,790 | |||
Income before interest and taxes | $ | 2,310 | $ | 2,710 | |||
Interest expense | 620 | 530 | |||||
Income before taxes | $ | 1,690 | $ | 2,180 | |||
Provision for taxes | 676 | 872 | |||||
Net income | $ | 1,014 | $ | 1,308 | |||
LOGIC COMPANY | |||||||
Comparative Balance Sheet | |||||||
December 31, 2017 and 2018 | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 12,300 | $ | 9,300 | |||
Accounts receivable | 16,800 | 12,800 | |||||
Merchandise inventory | 8,800 | 14,300 | |||||
Prepaid expenses | 24,300 | 10,300 | |||||
Total current assets | $ | 62,200 | $ | 46,700 | |||
Plant and equipment: | |||||||
Building (net) | $ | 14,800 | $ | 11,300 | |||
Land | 13,800 | 9,300 | |||||
Total plant and equipment | $ | 28,600 | $ | 20,600 | |||
Total assets | $ | 90,800 | $ | 67,300 | |||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 13,300 | $ | 7,500 | |||
Salaries payable | 7,300 | 5,300 | |||||
Total current liabilities | $ | 20,600 | $ | 12,800 | |||
Long-term liabilities: | |||||||
Mortgage note payable | 22,300 | 20,800 | |||||
Total liabilities | $ | 42,900 | $ | 33,600 | |||
Common stock | $ | 21,500 | $ | 21,200 | |||
26,400 | 12,500 | ||||||
Total stockholders’ equity | $ | 47,900 | $ | 33,700 | |||
Total liabilities and stockholders’ equity | $ | 90,800 | $ | 67,300 | |||
Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.)
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