LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 20,400 $ 16,050 Sales returns and allowances 900 100 Net sales $ 19,500 $ 15,950 Cost of merchandise (goods) sold 11,650 8,650 Gross profit $ 7,850 $ 7,300 Operating expenses: Depreciation $ 840 $ 670 Selling and administrative 3,250 2,700 Research 690 570 Miscellaneous 500 370 Total operating expenses $ 5,280 $ 4,310 Income before interest and taxes $ 2,570 $ 2,990 Interest expense 700 570 Income before taxes $ 1,870 $ 2,420 Provision for taxes 748 968 Net income $ 1,122 $ 1,452 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 12,700 $ 9,700 Accounts receivable 17,200 13,200 Merchandise inventory 9,200 14,700 Prepaid expenses 24,700 10,700 Total current assets $ 63,800 $ 48,300 Plant and equipment: Building (net) $ 15,200 $ 11,900 Land 14,200 9,700 Total plant and equipment $ 29,400 $ 21,600 Total assets $ 93,200 $ 69,900 Liabilities Current liabilities: Accounts payable $ 13,700 $ 7,700 Salaries payable 7,700 5,700 Total current liabilities $ 21,400 $ 13,400 Long-term liabilities: Mortgage note payable 22,700 21,200 Total liabilities $ 44,100 $ 34,600 Stockholders’ Equity Common stock $ 21,700 $ 21,700 Retained earnings 27,400 13,600 Total stockholders’ equity $ 49,100 $ 35,300 Total liabilities and stockholders’ equity $ 93,200 $ 69,900 Calculate the total debt to total assets 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 $ 20,400 $ 16,050 Sales returns and allowances 900 100 Net sales $ 19,500 $ 15,950 Cost of merchandise (goods) sold 11,650 8,650 Gross profit $ 7,850 $ 7,300 Operating expenses: Depreciation $ 840 $ 670 Selling and administrative 3,250 2,700 Research 690 570 Miscellaneous 500 370 Total operating expenses $ 5,280 $ 4,310 Income before interest and taxes $ 2,570 $ 2,990 Interest expense 700 570 Income before taxes $ 1,870 $ 2,420 Provision for taxes 748 968 Net income $ 1,122 $ 1,452 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 12,700 $ 9,700 Accounts receivable 17,200 13,200 Merchandise inventory 9,200 14,700 Prepaid expenses 24,700 10,700 Total current assets $ 63,800 $ 48,300 Plant and equipment: Building (net) $ 15,200 $ 11,900 Land 14,200 9,700 Total plant and equipment $ 29,400 $ 21,600 Total assets $ 93,200 $ 69,900 Liabilities Current liabilities: Accounts payable $ 13,700 $ 7,700 Salaries payable 7,700 5,700 Total current liabilities $ 21,400 $ 13,400 Long-term liabilities: Mortgage note payable 22,700 21,200 Total liabilities $ 44,100 $ 34,600 Stockholders’ Equity Common stock $ 21,700 $ 21,700 Retained earnings 27,400 13,600 Total stockholders’ equity $ 49,100 $ 35,300 Total liabilities and stockholders’ equity $ 93,200 $ 69,900 Calculate the total debt to total assets 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 | $ | 20,400 | $ | 16,050 | |||
Sales returns and allowances | 900 | 100 | |||||
Net sales | $ | 19,500 | $ | 15,950 | |||
Cost of merchandise (goods) sold | 11,650 | 8,650 | |||||
Gross profit | $ | 7,850 | $ | 7,300 | |||
Operating expenses: | |||||||
Depreciation | $ | 840 | $ | 670 | |||
Selling and administrative | 3,250 | 2,700 | |||||
Research | 690 | 570 | |||||
Miscellaneous | 500 | 370 | |||||
Total operating expenses | $ | 5,280 | $ | 4,310 | |||
Income before interest and taxes | $ | 2,570 | $ | 2,990 | |||
Interest expense | 700 | 570 | |||||
Income before taxes | $ | 1,870 | $ | 2,420 | |||
Provision for taxes | 748 | 968 | |||||
Net income | $ | 1,122 | $ | 1,452 | |||
LOGIC COMPANY | |||||||
Comparative Balance Sheet | |||||||
December 31, 2017 and 2018 | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 12,700 | $ | 9,700 | |||
Accounts receivable | 17,200 | 13,200 | |||||
Merchandise inventory | 9,200 | 14,700 | |||||
Prepaid expenses | 24,700 | 10,700 | |||||
Total current assets | $ | 63,800 | $ | 48,300 | |||
Plant and equipment: | |||||||
Building (net) | $ | 15,200 | $ | 11,900 | |||
Land | 14,200 | 9,700 | |||||
Total plant and equipment | $ | 29,400 | $ | 21,600 | |||
Total assets | $ | 93,200 | $ | 69,900 | |||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 13,700 | $ | 7,700 | |||
Salaries payable | 7,700 | 5,700 | |||||
Total current liabilities | $ | 21,400 | $ | 13,400 | |||
Long-term liabilities: | |||||||
Mortgage note payable | 22,700 | 21,200 | |||||
Total liabilities | $ | 44,100 | $ | 34,600 | |||
Common stock | $ | 21,700 | $ | 21,700 | |||
Retained earnings | 27,400 | 13,600 | |||||
Total stockholders’ equity | $ | 49,100 | $ | 35,300 | |||
Total liabilities and stockholders’ equity | $ | 93,200 | $ | 69,900 | |||
Calculate the total debt to total assets ratio. (Round your answers to the nearest hundredth.)
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