The comparative financial statements for Prince Company are below: ...
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Accounting
The comparative financial statements for Prince Company are below:
Year 2 | Year 1 | ||||||
Income statement: | |||||||
Sales revenue | $ | 224,000 | $ | 175,500 | |||
Cost of goods sold | 120,500 | 103,400 | |||||
Gross profit | 103,500 | 72,100 | |||||
Operating expenses and interest expense | 59,400 | 54,700 | |||||
Pretax income | 44,100 | 17,400 | |||||
Income tax | 11,400 | 5,700 | |||||
Net income | $ | 32,700 | $ | 11,700 | |||
Balance sheet: | |||||||
Cash | $ | 7,400 | $ | 8,700 | |||
Accounts receivable (net) | 15,700 | 19,700 | |||||
Inventory | 43,400 | 39,200 | |||||
Property and equipment (net) | 50,100 | 41,400 | |||||
Total assets | $ | 116,600 | $ | 109,000 | |||
Current liabilities (no interest) | $ | 17,700 | $ | 18,700 | |||
Long-term liabilities (12% interest) | 46,700 | 46,700 | |||||
Common stock ($5 par value, 7,700 shares outstanding) | 38,500 | 38,500 | |||||
Retained earnings | 13,700 | 5,100 | |||||
Total liabilities and stockholders' equity | $ | 116,600 | $ | 109,000 | |||
Required: 1. Compute component percentages for Year 2. (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Required : Sales Revenue(base amount), Cost of goods sold, Gross profit on sales, Operating expenses, Pretax income, Incomes taxes, New income, cash, Accounts receivable (net) , inventory, Property and equipment (net) Current liabilities, Long-term liabilities (12%interest), Retained earnings, Common stock($5 par value, 7,700 shares outstanding), Total liabilities and owners equity(the base amount)
2. Compute the ratios in the DuPont model for Year 2. (Round your answers to 2 decimal places.) Return on equity, Return on assets, Total asset turnover, Net profit margin, Financial leverage. |
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