Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Compute the following ratio analysis:
Gross Profit Margin
Write your interpretation after the computation.
Transcribed Image Text:BARRY'S SUPERSTORE
BARRY'S SUPERSTORE
Comparative Year-End Income Statements
Comparative Year-End Balance Sheets
Prior Year
Current Year
Prior Year
Current Year
Net Sales
$100,000
$120,000
Assets:
Cost of Goods Sold
50,000
60,000
Cash
$90,000
$110,000
Gross Profit
50,000
60,000
Accounts Receivable
20,000
30,000
Inventory
35,000
40,000
Rent Expense
5,000
5,500
Short-Term Investments
15,000
20,000
Total Current Asstes
200,000
Depreciation Expense
Salaries Expense
2,500
3,600
160,000
3,000
5,400
Equipment
40,000
50,000
Utility Expense
1,500
2,500
Total Assets
$200,000
$250,000
Operating Income
38,000
43,000
Liabilities:
Accounts Payable
$ 60,000
$ 75,000
Interest Expense
3,000
2,000
Unearned Revenue
10,000
25,000
Income Tax Expense
5,000
6,000
Total Current Liabilities
70,000
100,000
Net Income
$ 30,000
$ 35,000
Notes Payable
40,000
50,000
Total Liabilities
110,000
150,000
Stockholder Equity
Common Stock
75,000
80,000
Ending Retained Earnings
Total Stockholder Equity
15,000
20,000
90,000
100,000
Total Liabilities and Stockholder Equity
$200,000
$250,000
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