Answer the following: 16. Gross Profit ratio 17. Operating Ratio 18. Rate of return on Assets
Answer the following: 16. Gross Profit ratio 17. Operating Ratio 18. Rate of return on Assets
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 87PSB
Related questions
Question
Answer the following:
16. Gross Profit ratio
17. Operating Ratio
18.
![Assignment
COMPARATIVE STATEMENTS
Sikat Manufacturing Corporation
Income Statement
For the year ended Dec. 31, 2020 and 202019
2020
2019
P 5,150,000
-150,000
5,000,000
3,200,000
1,800,000
Sales
4,250,000
na 250.000
4,000,000
2.600,000
1,400,000
Less: Sales Returns and Allowances
Net Sales
Less: Cost of Sales
Gross Profit
Less: Operating Expenses
Selling Expenses
General and Administrative Expenses
Total Operating Expenses
Operating Income
Less: Interest expense
Net Income before tax
Less: Income tax.(32% )
Net Income
720,000
780,000
1,500,000
300,000
60,000
240,000
76,800
P 163.200
600,000
600,000
1,200,000
200,000
40,000
160,000
51,200
P 108,800
Sikat Manufacturing Corporation
Balance Sheet
Dec. 31, 2020 and 2019
2020
2019
ASSETS
P 225,000
150,000
240,000
260,000
120,000
150,000
70,000
550,000
P1.765.000 P 1,520,000
Cash
P140.000
125,000
180,000
160,000
145,000
170,000
80,000
520,000
Marketable Securities
Accounts Receivable
Inventories: Finished Goods
Work-in-Process
Raw Materials
Prepaid Expenses
Machinery and Equipment.net
TOTAL ASSETS
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts Payable
12% Bonds Payable, due in 2010
Common Stock, par 100
Additional Paid-in Capital
Retained Earnings
TOTAL LIAB. & STOCKHOLDERS' EQUITY
150,000
400,000
800,000
300,000
115,000
P1,765,000 P 1,520,000
100,000
300,000
750,000
250,000
120,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73f42231-1038-4a7d-8a6e-6642d3a0a586%2F48c0f30c-9b4a-4de1-89e3-83a7cc558eb9%2Fxmic3v_processed.png&w=3840&q=75)
Transcribed Image Text:Assignment
COMPARATIVE STATEMENTS
Sikat Manufacturing Corporation
Income Statement
For the year ended Dec. 31, 2020 and 202019
2020
2019
P 5,150,000
-150,000
5,000,000
3,200,000
1,800,000
Sales
4,250,000
na 250.000
4,000,000
2.600,000
1,400,000
Less: Sales Returns and Allowances
Net Sales
Less: Cost of Sales
Gross Profit
Less: Operating Expenses
Selling Expenses
General and Administrative Expenses
Total Operating Expenses
Operating Income
Less: Interest expense
Net Income before tax
Less: Income tax.(32% )
Net Income
720,000
780,000
1,500,000
300,000
60,000
240,000
76,800
P 163.200
600,000
600,000
1,200,000
200,000
40,000
160,000
51,200
P 108,800
Sikat Manufacturing Corporation
Balance Sheet
Dec. 31, 2020 and 2019
2020
2019
ASSETS
P 225,000
150,000
240,000
260,000
120,000
150,000
70,000
550,000
P1.765.000 P 1,520,000
Cash
P140.000
125,000
180,000
160,000
145,000
170,000
80,000
520,000
Marketable Securities
Accounts Receivable
Inventories: Finished Goods
Work-in-Process
Raw Materials
Prepaid Expenses
Machinery and Equipment.net
TOTAL ASSETS
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts Payable
12% Bonds Payable, due in 2010
Common Stock, par 100
Additional Paid-in Capital
Retained Earnings
TOTAL LIAB. & STOCKHOLDERS' EQUITY
150,000
400,000
800,000
300,000
115,000
P1,765,000 P 1,520,000
100,000
300,000
750,000
250,000
120,000
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