Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year a. Debt ratio b. Debt-to-equity ratio 2020 2019 $10,177,300 $9,613,950 5,612,300 5,298,700 4,565,000 4,315,250 2,840,250 2,634,200 1,724,750 1,681,050 308,650 1,372,400 411,720 $960,680 c. Times interest earned ratio 300,300 1,424,450 427,335 $997,115 29,550 433,450 463,000 534,115 3,660,380 $4,194,495 29,500 413,100 Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) 442,600 518,080 3,142,300 $3,660,380 % times
Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year a. Debt ratio b. Debt-to-equity ratio 2020 2019 $10,177,300 $9,613,950 5,612,300 5,298,700 4,565,000 4,315,250 2,840,250 2,634,200 1,724,750 1,681,050 308,650 1,372,400 411,720 $960,680 c. Times interest earned ratio 300,300 1,424,450 427,335 $997,115 29,550 433,450 463,000 534,115 3,660,380 $4,194,495 29,500 413,100 Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) 442,600 518,080 3,142,300 $3,660,380 % times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Medical
Comparative Income Statement and Statement of Retained Earnings
For the Year
Sales revenue (all on account)
Cost of goods sold
Gross profit
Operating expenses
Net operating income
Interest expense
Net income before taxes
Income taxes (30%)
Net income
Dividends paid
Preferred dividends
Common dividends
Total dividends paid
Net income retained
Retained earnings, beginning of year
Retained earnings, end of year
a. Debt ratio
b. Debt-to-equity ratio
C.
2020
$10,177,300
5,612,300
2019
$9,613,950
5,298,700
4,315,250
2,634,200
1,724,750 1,681,050
308,650
Times interest earned ratio
4,565,000
2,840,250
300,300
1,424,450
427,335
$997,115
29,550
433,450
463,000
534,115
3,660,380
$4,194,495
1,372,400
411,720
$960,680
Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.)
29,500
413,100
442,600
518,080
3,142,300
$3,660,380
%
times
Transcribed Image Text:Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and
income statement for 2019 and 2020 follow.
Assets
Current assets
Cash
Cullumber Medical
Comparative Balance Sheet
As of December 31
Accounts receivable, net
Inventory
Other current assets
Total current assets
Property, plant, & equipment, net
Total assets
2020
$397,000
1,089,000
733,000
Liabilities and Stockholders' Equity
Current liabilities
Long-term debt
Total liabilities
Preferred stock, $5 par value
Common stock, $0.25 par value
104,650
Retained earnings
4,194,495
Total stockholders' equity
4,358,045
Total liabilities and stockholders' equity $11,216,645
$3,156,000
3,702,600
6,858,600
2019
381,400
2,600,400
8,616,245
$11,216,645 $10,561,830
58,900
$417,450
776,400
681,050
247,100
2,122,000
8,439,830
$2,846,050
3,892,600
6,738,650
58,950
103,850
3,660,380
3,823,180
$10,561,830
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