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Presented below are the items included on the financial statements of We Just Might Make...

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Question

Accounting

Presented below are the items included on the financial statements of We Just Might Make It Corporation for the year ending December 31, 2019

2019 2018
Sales revenue $2,300.000 $2,100,000
Cost of goods sold 1,000,000 1,300,000
General and administrative expenses 900,000 500,000
Other income 40,000 20,000
Income tax expense 150,000 125,000
Current Assets 525,000 475,000
Current Liabilities 631,500 465,000
Average Assets $1,000,000 $900.000

Required

Based on the above, determine the following (show your work for partial credit) for 2019 and 2018.

Briefly comment on the trend for #2, #4, and #5:

  1. Net income
  2. Return on Assets (ROA)
  3. Gross Profit (in dollars)
  4. Gross Profit % (gross profit dollars/sales revenue)
  5. Current ratio (current assets/current liabilities)

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