Calculate the asset turnover ratio. Note: Enter your response as a decimal rounded to 2 places. Asset turnover ratio 2023 2022 dollar sales per $1 of assets
Calculate the asset turnover ratio. Note: Enter your response as a decimal rounded to 2 places. Asset turnover ratio 2023 2022 dollar sales per $1 of assets
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Logic Company**
**Comparative Income Statement**
*For Years Ended December 31, 2022 and 2023*
| | 2023 | 2022 |
|---|---|---|
| **Gross sales** | $21,200 | $16,650 |
| **Sales returns and allowances** | 800 | 100 |
| **Net sales** | $20,400 | $16,550 |
| **Cost of merchandise (goods) sold** | 11,450 | 8,400 |
| **Gross profit** | $8,950 | $8,150 |
| **Operating expenses:** | | |
| Depreciation | $920 | $710 |
| Selling and administrative | 3,850 | 3,100 |
| Research | 770 | 610 |
| Miscellaneous | 580 | 410 |
| **Total operating expenses** | $6,120 | $4,830 |
| **Income before interest and taxes** | $2,830 | $3,320 |
| **Interest expense** | 780 | 610 |
| **Income before taxes** | $2,050 | $2,710 |
| **Provision for taxes** | 820 | 1,084 |
| **Net income** | $1,230 | $1,626 |
**Logic Company**
**Comparative Balance Sheet**
*December 31, 2022 and 2023*
| | 2023 | 2022 |
|---|---|---|
| **Assets** | | |
| **Current assets:** | | |
| Cash | $13,100 | $10,100 |
| Accounts receivable | 17,600 | 13,600 |
| Merchandise inventory | 9,600 | 15,100 |
| Prepaid expenses | 25,100 | 11,100 |
| **Total current assets** | $65,400 | $49,900 |
| **Plant and equipment:** | | |
| Building (net) | $15,600 | $12,100 |
| Land | 14,600 | 10,100 |
| **Total plant and equipment** | $30,200 | $22,200 |
| **Total assets** | $95,600 | $72,100 |
| **Liabilities** | | |
| **Current liabilities:** | | |
|
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