calculate the • efficiency ratios, • liquidity ratios, • leverage ratios, and • profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent. Net SalesCost of goods soldGross profitOperating expensesOperating incomeInterest expenseProfit before taxesTaxesNet incomeKPC's CorporationVertical Analysis Income StatementFor this year and last yearThis YearAmountPercent680,000100.0%410,00060.3%270,00039.75190,00027.9%80,00011.8%1.0%73,00010.7%22,0003.2%51,0007.5%7,000Last YearAmount600,000330,000270,000192,00078,0002,00076,00022,80053,200Percent100.0%55.0%45.0%32.0%13.0%0.3%12.7%3.8%8.9% KPC's CorporationVertical Analysis Balance SheetFor this year and last yearThis YearAmountPercent50,0008.8%80,00014.0%180,00031.6%310,00034.4%300,00052.6%-40.0000.0%570,000100.0%100,00017.5%70,00012.3%80,00014.0%250,00043.9%130,00022.8%190,00033.3%320,000 56.1%570,000 100.0%ASSETSCashAccounts receivableInventoriesTotal Current AssetsPlant & equipmentLess accumulated depreciationTotal AssetsLIABILITIES AND EQUITYAccounts payableAccrued liabilitiesMortgage payableTotal LiabilitiesStockholder's EquityCommon stockRetained earningsTotal Stockholder's EquityTotal Liabilities and EquityLast YearAmount40,00060,000110,000210,000260,000-20.000450,000150,00050,000200.00090,000160,000250,000450,000Percent8.9%13.3%24.4%46.7%57.8%-4.4%100.0%33.3%11.1%0.0%44.4%20.0%35.6%55.65100.0%

Based on the income statement and balance sheet of KPC corporation for the current year and the last…

calculate the • efficiency ratios, • liquidity ratios, • leverage ratios, and • profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent.

calculate the • efficiency ratios, • liquidity ratios, • leverage ratios, and • profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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