LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 23,800 $ 18,600 Sales returns and allowances 1,000 100 Net sales $ 22,800 $ 18,500 Cost of merchandise (goods) sold 10,800 7,200 Gross profit $ 12,000 $ 11,300 Operating expenses: Depreciation $ 1,180 $ 840 Selling and administrative 5,800 4,400 Research 1,030 740 Miscellaneous 840 540 Total operating expenses $ 8,850 $ 6,520 Income before interest and taxes $ 3,150 $ 4,780 Interest expense 1,040 740 Income before taxes $ 2,110 $ 4,040 Provision for taxes 844 1,616 Net income $ 1,266 $ 2,424 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 11,100 $ 8,100 Accounts receivable 15,600 11,600 Merchandise inventory 7,600 13,100 Prepaid expenses 23,100 9,100 Total current assets $ 57,400 $ 41,900 Plant and equipment: Building (net) $ 13,600 $ 10,200 Land 12,600 8,100 Total plant and equipment $ 26,200 $ 18,300 Total assets $ 83,600 $ 60,200 Liabilities Current liabilities: Accounts payable $ 12,100 $ 6,100 Salaries payable 6,100 4,100 Total current liabilities $ 18,200 $ 10,200 Long-term liabilities: Mortgage note payable 21,100 19,600 Total liabilities $ 39,300 $ 29,800 Stockholders’ Equity Common stock $ 20,100 $ 20,100 Retained earnings 24,200 10,300 Total stockholders’ equity $ 44,300 $ 30,400 Total liabilities and stockholders’ equity $ 83,600 $ 60,200 Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.) (FOR 2018 AND 2017)
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 23,800 $ 18,600 Sales returns and allowances 1,000 100 Net sales $ 22,800 $ 18,500 Cost of merchandise (goods) sold 10,800 7,200 Gross profit $ 12,000 $ 11,300 Operating expenses: Depreciation $ 1,180 $ 840 Selling and administrative 5,800 4,400 Research 1,030 740 Miscellaneous 840 540 Total operating expenses $ 8,850 $ 6,520 Income before interest and taxes $ 3,150 $ 4,780 Interest expense 1,040 740 Income before taxes $ 2,110 $ 4,040 Provision for taxes 844 1,616 Net income $ 1,266 $ 2,424 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 11,100 $ 8,100 Accounts receivable 15,600 11,600 Merchandise inventory 7,600 13,100 Prepaid expenses 23,100 9,100 Total current assets $ 57,400 $ 41,900 Plant and equipment: Building (net) $ 13,600 $ 10,200 Land 12,600 8,100 Total plant and equipment $ 26,200 $ 18,300 Total assets $ 83,600 $ 60,200 Liabilities Current liabilities: Accounts payable $ 12,100 $ 6,100 Salaries payable 6,100 4,100 Total current liabilities $ 18,200 $ 10,200 Long-term liabilities: Mortgage note payable 21,100 19,600 Total liabilities $ 39,300 $ 29,800 Stockholders’ Equity Common stock $ 20,100 $ 20,100 Retained earnings 24,200 10,300 Total stockholders’ equity $ 44,300 $ 30,400 Total liabilities and stockholders’ equity $ 83,600 $ 60,200 Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.) (FOR 2018 AND 2017)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
LOGIC COMPANY | |||||||
Comparative Income Statement | |||||||
For Years Ended December 31, 2017 and 2018 | |||||||
2018 | 2017 | ||||||
Gross sales | $ | 23,800 | $ | 18,600 | |||
Sales returns and allowances | 1,000 | 100 | |||||
Net sales | $ | 22,800 | $ | 18,500 | |||
Cost of merchandise (goods) sold | 10,800 | 7,200 | |||||
Gross profit | $ | 12,000 | $ | 11,300 | |||
Operating expenses: | |||||||
$ | 1,180 | $ | 840 | ||||
Selling and administrative | 5,800 | 4,400 | |||||
Research | 1,030 | 740 | |||||
Miscellaneous | 840 | 540 | |||||
Total operating expenses | $ | 8,850 | $ | 6,520 | |||
Income before interest and taxes | $ | 3,150 | $ | 4,780 | |||
Interest expense | 1,040 | 740 | |||||
Income before taxes | $ | 2,110 | $ | 4,040 | |||
Provision for taxes | 844 | 1,616 | |||||
Net income | $ | 1,266 | $ | 2,424 | |||
LOGIC COMPANY | |||||||
Comparative |
|||||||
December 31, 2017 and 2018 | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 11,100 | $ | 8,100 | |||
15,600 | 11,600 | ||||||
Merchandise inventory | 7,600 | 13,100 | |||||
Prepaid expenses | 23,100 | 9,100 | |||||
Total current assets | $ | 57,400 | $ | 41,900 | |||
Plant and equipment: | |||||||
Building (net) | $ | 13,600 | $ | 10,200 | |||
Land | 12,600 | 8,100 | |||||
Total plant and equipment | $ | 26,200 | $ | 18,300 | |||
Total assets | $ | 83,600 | $ | 60,200 | |||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 12,100 | $ | 6,100 | |||
Salaries payable | 6,100 | 4,100 | |||||
Total current liabilities | $ | 18,200 | $ | 10,200 | |||
Long-term liabilities: | |||||||
Mortgage note payable | 21,100 | 19,600 | |||||
Total liabilities | $ | 39,300 | $ | 29,800 | |||
Common stock | $ | 20,100 | $ | 20,100 | |||
24,200 | 10,300 | ||||||
Total stockholders’ equity | $ | 44,300 | $ | 30,400 | |||
Total liabilities and stockholders’ equity | $ | 83,600 | $ | 60,200 | |||
Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.)
(FOR 2018 AND 2017)
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