METRO TRACk COMPANY Comparative Income Statements For Years Ended December 31, 2017 and 2016 ...

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Accounting

METRO TRACk COMPANY

Comparative Income Statements

For Years Ended December 31, 2017 and 2016

2017

2016

Sales

$57,534

$42,542

Cost of goods sold

16,870

13,669

Gross profit

40,664

28,873

Operating expenses

24,093

19,241

Operating income

16,571

9,632

Other expenses/revenues:

Interest revenue

240

194

Interest expense

(196

)

(172

)

Total other (expenses)/revenues

(44

)

(22

)

Income before income taxes

16,615

9,610

Income taxes (34%)

5,649

3,267

Net income

$10,966

$ 6,343

METRO TRACK COMPANY

Comparative Balance Sheets

December 31, 2017 and 2016

2017

2016

Assets

Cash

$ 908

$ 636

Marketable securities

1,115

497

Accounts receivable

2,466

2,564

Inventory

3,829

3,970

Prepaid expenses

319

283

Total current assets

8,637

7,950

Investments and other assets

1,976

1,480

Property Plant and equipment, net

7,188

6,570

Trademarks and other intangibles

671

690

Total Assets

$18,472

$16,690

Liabilities and Stockholders' Equity

Notes payable

$ 457

$ 1,638

Current maturities of long-term debt

25

37

Accounts payable and accrued expenses

4,647

4,736

Total current liabilities

5,129

6,411

Long-term debt

1,419

2,321

Total liabilities

6,548

8,732

Common stock

318

318

Additional paid-in capital

583

583

Retained earnings

11,023

7,057

Total stockholders' equity

11,924

7,958

Total liabilities and equity

$18,472

$16,690

Shares at 12/31/17

1,000

Market value of shars at 12/31/17

$25

Dividends per share declared and paid 2017

$7.00

The return-on-sales ratio for 2017 is:

A. 5.3 percent.

B. 9.5 percent.

C. 5.0 percent.

D. 19.3 percent.

The debt-to-equity ratio for 2017 is:

A. 54.9 percent.

B. 48.2 percent.

C. 61.9 percent.

D. 45.1 percent.

The earnings per share for 2017 is:

A. $10.97

B. $60.07

C. $ 1.57

D. $ 7.16

The price-earnings ratio for 2017 is:

A. 11.93 times

B. 2.28 times

C. 4.68 times

D. 13.13 times

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