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Your supervisor has requested that you calculate the following ratios, rounded to the nearest hundredth for both 2017 and 2016                                                                                     2017                                        2016   Acid test     Asset turnover     Net Income (after tax) to the net sales

Your supervisor has requested that you calculate the following ratios, rounded to the nearest hundredth for both 2017 and 2016                                                                                     2017                                        2016   Acid test     Asset turnover     Net Income (after tax) to the net sales

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Your supervisor has requested that you calculate the following ratios, rounded to the nearest hundredth for both 2017 and 2016

                                                                                    2017                                        2016

 

  1. Acid test

 

 

  1. Asset turnover

 

 

  1. Net Income (after tax) to the net sales

 

LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017 2017 2016 Amount Percent Amount Perten Assets Current assets. Cash $12.000 $9,000 Accounts rec eivable Merchandise inventory Prepaid expenses Total current assets 16.500 8,500 24,000 $61.000 12,500 14,000 10,000 $45.500 Plant and equlpment: Building (net) Land Total plant and equipment $14,500 13,500 $28.000 $89,000 $ 11,000 9,000 $20.000 Total assets $65.500 Liablitles Current llabilities. Accounts payable Salaries payable $13,000 7,000 $ 7,000 5.000 $12.000 Total current llabilities $20.000 Long-lem llabilities: Mortgage note payable Total liabilities 20,500 $32,500 22,000 $42.000 Stockholders' Equity $21.000 $21,000 Common stock Retained earnings 12,000 $33,000 $65.500 26,000 Total stockholders' equity Total liabilities and stockholders' equity $47,000 $89,000
Transcribed Image Text:LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017 2017 2016 Amount Percent Amount Perten Assets Current assets. Cash $12.000 $9,000 Accounts rec eivable Merchandise inventory Prepaid expenses Total current assets 16.500 8,500 24,000 $61.000 12,500 14,000 10,000 $45.500 Plant and equlpment: Building (net) Land Total plant and equipment $14,500 13,500 $28.000 $89,000 $ 11,000 9,000 $20.000 Total assets $65.500 Liablitles Current llabilities. Accounts payable Salaries payable $13,000 7,000 $ 7,000 5.000 $12.000 Total current llabilities $20.000 Long-lem llabilities: Mortgage note payable Total liabilities 20,500 $32,500 22,000 $42.000 Stockholders' Equity $21.000 $21,000 Common stock Retained earnings 12,000 $33,000 $65.500 26,000 Total stockholders' equity Total liabilities and stockholders' equity $47,000 $89,000
LOGIĆ COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017 INCREASE (DECREASE). 2017 2016 Amount Percent Gross sales $19,000 $15,000 Sales returns and allowances 1.000 100 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $18.000 12,000 $6.000 $14.900 9,000 $ 5,900 $ 700 2,200 $ 600 2,000 550 500 360 300 Miscellaneous $3.400 $ 2,500 500 $ 2,000 $ 3,810 $2,190 Total operating expenses Income before interest and taxes 560 Interest expense Income before laxes $ 1,630 640 800 Provision for taxes. Net income $ 990 $ 1,200
Transcribed Image Text:LOGIĆ COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017 INCREASE (DECREASE). 2017 2016 Amount Percent Gross sales $19,000 $15,000 Sales returns and allowances 1.000 100 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $18.000 12,000 $6.000 $14.900 9,000 $ 5,900 $ 700 2,200 $ 600 2,000 550 500 360 300 Miscellaneous $3.400 $ 2,500 500 $ 2,000 $ 3,810 $2,190 Total operating expenses Income before interest and taxes 560 Interest expense Income before laxes $ 1,630 640 800 Provision for taxes. Net income $ 990 $ 1,200
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