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2) Ratios  Based on the information given in picture #1, complete the following ratios for the last TWO  years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x) Profitability Ratios                          Current Yr.  Prior Yr.   Fav/Unfav. Gross Margin (%) {Gross Income/Sales Revenue}   Profit Margin (%) {Net income/ Sales Revenue}   Return on Assets (%) {Net Income/ Average Total Assets}

2) Ratios  Based on the information given in picture #1, complete the following ratios for the last TWO  years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x) Profitability Ratios                          Current Yr.  Prior Yr.   Fav/Unfav. Gross Margin (%) {Gross Income/Sales Revenue}   Profit Margin (%) {Net income/ Sales Revenue}   Return on Assets (%) {Net Income/ Average Total Assets}

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2) Ratios 

Based on the information given in picture #1, complete the following ratios for the last TWO  years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)

Profitability Ratios                          Current Yr.  Prior Yr.   Fav/Unfav.

Gross Margin (%)

{Gross Income/Sales Revenue}

 

Profit Margin (%)

{Net income/ Sales Revenue}

 

Return on Assets (%)

{Net Income/ Average Total Assets}    

  

1- Key Statistices: (OMIT ALL ZEROS 000); if none, leave blank Income Statement (2020) Current Year 406,785 (201G) Prior Year Increase(Decrease) Sales/Revenue 297,897 T 108, 888 + 75,698 97,285 + 33,190 (12,443) (40,30 a) 3247. 37/- 387. 347 276,310 200, 612 Cost of Goods Sold 130,475 (s2,752) Gross Income Net Income Balance Sheet End of Current Year End of Increase (Decrease) Prior Year 275,988 (116, 061) -42%. 40, 080 (410s)-10%. 40,121 491. Cash & Short-term investments |59,127 Total Accounts Reccivable 35,975 veatories 12, 귀구 81,596 332, 226 Net Property, Plant & Equipment 129,869 403, 594 (74,366) -18/. 47/47 니 +82,39S 1747. Total Current Assets Intangible Assets 4 SI, 923 +i br077 4% 26,923 + 261148 4구,697 +41, 2구 0 67,833 +3 3,076 497 384,090 (14,993) -47. Total Assets 46४,००6 977. Accounts Payable 53,071 877. 88,967 Total Current Liabilities Total Linbilities 100,90a Total Shareholders' Equity 36구,097 Asset Compoition: End of Current Year % of Total Assets Largest Assets: (from above) Net property ,Plant 1. tequipmeAAA casn + Snort term 2.iA Amen 129869 I54,127 -42%. 491. 3. Innentoriey 12/,717
Transcribed Image Text:1- Key Statistices: (OMIT ALL ZEROS 000); if none, leave blank Income Statement (2020) Current Year 406,785 (201G) Prior Year Increase(Decrease) Sales/Revenue 297,897 T 108, 888 + 75,698 97,285 + 33,190 (12,443) (40,30 a) 3247. 37/- 387. 347 276,310 200, 612 Cost of Goods Sold 130,475 (s2,752) Gross Income Net Income Balance Sheet End of Current Year End of Increase (Decrease) Prior Year 275,988 (116, 061) -42%. 40, 080 (410s)-10%. 40,121 491. Cash & Short-term investments |59,127 Total Accounts Reccivable 35,975 veatories 12, 귀구 81,596 332, 226 Net Property, Plant & Equipment 129,869 403, 594 (74,366) -18/. 47/47 니 +82,39S 1747. Total Current Assets Intangible Assets 4 SI, 923 +i br077 4% 26,923 + 261148 4구,697 +41, 2구 0 67,833 +3 3,076 497 384,090 (14,993) -47. Total Assets 46४,००6 977. Accounts Payable 53,071 877. 88,967 Total Current Liabilities Total Linbilities 100,90a Total Shareholders' Equity 36구,097 Asset Compoition: End of Current Year % of Total Assets Largest Assets: (from above) Net property ,Plant 1. tequipmeAAA casn + Snort term 2.iA Amen 129869 I54,127 -42%. 491. 3. Innentoriey 12/,717
2- Ratios - Complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8X). FAVORABLE Current Year (G) Prior Year (C) (UNFAVORABLE) Profitability Ratios Gross Margin (%) {Gross Income / Sales Revenue} Profit Margin (%) {Net Income / Sales Revenue} Return on Assets (%) {Net income / Average Total Assets}
Transcribed Image Text:2- Ratios - Complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8X). FAVORABLE Current Year (G) Prior Year (C) (UNFAVORABLE) Profitability Ratios Gross Margin (%) {Gross Income / Sales Revenue} Profit Margin (%) {Net Income / Sales Revenue} Return on Assets (%) {Net income / Average Total Assets}
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