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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
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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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 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Profit before taxes Taxes Net income KPC's Corporation Vertical Analysis Income Statement For this year and last year This Year Amount Percent 680,000 100.0% 410,000 60.3% 270,000 39.75 190,000 27.9% 80,000 11.8% 1.0% 73,000 10.7% 22,000 3.2% 51,000 7.5% 7,000 Last Year Amount 600,000 330,000 270,000 192,000 78,000 2,000 76,000 22,800 53,200 Percent 100.0% 55.0% 45.0% 32.0% 13.0% 0.3% 12.7% 3.8% 8.9%
Transcribed Image Text:Net Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Profit before taxes Taxes Net income KPC's Corporation Vertical Analysis Income Statement For this year and last year This Year Amount Percent 680,000 100.0% 410,000 60.3% 270,000 39.75 190,000 27.9% 80,000 11.8% 1.0% 73,000 10.7% 22,000 3.2% 51,000 7.5% 7,000 Last Year Amount 600,000 330,000 270,000 192,000 78,000 2,000 76,000 22,800 53,200 Percent 100.0% 55.0% 45.0% 32.0% 13.0% 0.3% 12.7% 3.8% 8.9%
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