QUESTION 6 (Points 30) 6. Comparative balance sheets report average total assets for the year...
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Accounting
QUESTION 6 (Points 30)
6. Comparative balance sheets report average total assets for the year of $2,575,000 and average total equity of $1,917,000 (dollar amounts in thousands, except earnings per share).
| Sparks INC STATEMENT OF EARNINGS FOR THE YEAR ENDING DECEMBER 31, 2019 |
| Net Sales ...... $4,395,253 Costs and expenses: ...... Costs of goods sold ...... (2,821,455) Operating expenses ...... (1,004,396) Interest revenue ...... 15,797 Earnings before income tax ...... $585,199 Income tax expense ...... (204,820) Net earnings ...... $380,379 Earnings per share ...... $1.70 |
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6.1. Prepare an income statement for the year in a multiple-step format.
Compute the following:
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6.2. Gross profit rate,
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6.3. Net income as a percentage of net sales,
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6.4. Return on assets, and
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6.5. Return on equity for the year.
(Round computations to the nearest one-tenth of 1 percent.)
6.6. Explain why interest revenue is not included in the company's gross profit computation.
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