COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN EACH CATEGORY.
COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN EACH CATEGORY.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN EACH CATEGORY.
![JKL Company
COMPARATIVE BALAŃCE SHEET
For the Year 2015 & 2016
Assets
2015
2016
Cash
290,000 400,000
120,000
Accounts Receivable
100,000
20,000
80,000
20,000
620,000
Trading Securities
40,000
60,000
10,000
Inventories
Prepaid Expenses
Total Current Assets
520,000
Total Non-Current
Assets
200,000
300,000
Total Assets
720,000
920,000
Liabilities
Total Current
Liabilities
100,000
50,000
Total Non-Current
Liabilities
300,000
450,000
Owner's
Equity
Total Owner's Equity
320,000
420,000
Total Liabilities & OE
720,000
920,000
JKL Company
COMPARATIVE INCÓME STATEMENT
For the Year 2015 & 2016:
2015
2016
Net Sales
700,000
900,000
Cost of Goods Sold
(100,000)
(80,000)
600.000
820,000
Gross Profit
Operating Expenses
(50,000)
(120,000)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd82d7663-6878-4927-8791-754ae27e6dc4%2F230c7587-b155-4cc6-84cd-e935733b0d5b%2F8qfiugx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:JKL Company
COMPARATIVE BALAŃCE SHEET
For the Year 2015 & 2016
Assets
2015
2016
Cash
290,000 400,000
120,000
Accounts Receivable
100,000
20,000
80,000
20,000
620,000
Trading Securities
40,000
60,000
10,000
Inventories
Prepaid Expenses
Total Current Assets
520,000
Total Non-Current
Assets
200,000
300,000
Total Assets
720,000
920,000
Liabilities
Total Current
Liabilities
100,000
50,000
Total Non-Current
Liabilities
300,000
450,000
Owner's
Equity
Total Owner's Equity
320,000
420,000
Total Liabilities & OE
720,000
920,000
JKL Company
COMPARATIVE INCÓME STATEMENT
For the Year 2015 & 2016:
2015
2016
Net Sales
700,000
900,000
Cost of Goods Sold
(100,000)
(80,000)
600.000
820,000
Gross Profit
Operating Expenses
(50,000)
(120,000)
![Earnings Before Interest
and Taxes
550,000
700,000
Interest Expense
(10.000)
(50,000)
NI before Tax
540,000
650,000
Income Tax
[162,000)
(195.000
Net Income
378,000
455,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd82d7663-6878-4927-8791-754ae27e6dc4%2F230c7587-b155-4cc6-84cd-e935733b0d5b%2Fqwzityf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Earnings Before Interest
and Taxes
550,000
700,000
Interest Expense
(10.000)
(50,000)
NI before Tax
540,000
650,000
Income Tax
[162,000)
(195.000
Net Income
378,000
455,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 8 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education