Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $ 11,000 Land 13,500 9,000 Total plant and equipment $ 28,000 $ 20,000 Total assets $ 89,000 $ 65,500 Liabilities Current liabilities: Accounts payable $ 13,000 $ 7,000 Salaries payable 7,000 5,000 Total current liabilities $ 20,000 $ 12,000 Long-term liabilities: Mortgage note payable 22,000 20,500 Total liabilities $ 42,000 $ 32,500 Stockholders’ Equity Common stock $ 21,000 $ 21,000 Retained earnings 26,000 12,000 Total stockholders’ equity $ 47,000 $ 33,000 Total liabilities and stockholders’ equity $ 89,000 $ 65,500 Calculate the current ratio. (Do NOT enter your answer as a percentage (i.e., do not move the decimal two places to the right). Enter it as a proportion rounded to the nearest hundredth.) Current Ration 2020 2019
Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $ 11,000 Land 13,500 9,000 Total plant and equipment $ 28,000 $ 20,000 Total assets $ 89,000 $ 65,500 Liabilities Current liabilities: Accounts payable $ 13,000 $ 7,000 Salaries payable 7,000 5,000 Total current liabilities $ 20,000 $ 12,000 Long-term liabilities: Mortgage note payable 22,000 20,500 Total liabilities $ 42,000 $ 32,500 Stockholders’ Equity Common stock $ 21,000 $ 21,000 Retained earnings 26,000 12,000 Total stockholders’ equity $ 47,000 $ 33,000 Total liabilities and stockholders’ equity $ 89,000 $ 65,500 Calculate the current ratio. (Do NOT enter your answer as a percentage (i.e., do not move the decimal two places to the right). Enter it as a proportion rounded to the nearest hundredth.) Current Ration 2020 2019
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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| Gross sales | $ | 19,000 | $ | 15,000 |
| Sales returns and allowances | 1,000 | 100 | ||
| Net sales | $ | 18,000 | $ | 14,900 |
| Cost of merchandise (goods) sold | 12,000 | 9,000 | ||
| Gross profit | $ | 6,000 | $ | 5,900 |
| Operating expenses: | ||||
| $ | 700 | $ | 600 | |
| Selling and administrative | 2,200 | 2,000 | ||
| Research | 550 | 500 | ||
| Miscellaneous | 360 | 300 | ||
| Total operating expenses | $ | 3,810 | $ | 3,400 |
| Income before interest and taxes | $ | 2,190 | $ | 2,500 |
| Interest expense | 560 | 500 | ||
| Income before taxes | $ | 1,630 | $ | 2,000 |
| Provision for taxes | 640 | 800 | ||
| Net income | $ | 990 | $ | 1,200 |
| LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 |
||||
| 2020 | 2019 | |||
| Assets | ||||
| Current assets: | ||||
| Cash | $ | 12,000 | $ | 9,000 |
| Accounts receivable | 16,500 | 12,500 | ||
| Merchandise inventory | 8,500 | 14,000 | ||
| Prepaid expenses | 24,000 | 10,000 | ||
| Total current assets | $ | 61,000 | $ | 45,500 |
| Plant and equipment: | ||||
| Building (net) | $ | 14,500 | $ | 11,000 |
| Land | 13,500 | 9,000 | ||
| Total plant and equipment | $ | 28,000 | $ | 20,000 |
| Total assets | $ | 89,000 | $ | 65,500 |
| Liabilities | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 13,000 | $ | 7,000 |
| Salaries payable | 7,000 | 5,000 | ||
| Total current liabilities | $ | 20,000 | $ | 12,000 |
| Long-term liabilities: | ||||
| Mortgage note payable | 22,000 | 20,500 | ||
| Total liabilities | $ | 42,000 | $ | 32,500 |
| Common stock | $ | 21,000 | $ | 21,000 |
| 26,000 | 12,000 | |||
| Total stockholders’ equity | $ | 47,000 | $ | 33,000 |
| Total liabilities and stockholders’ equity | $ | 89,000 | $ | 65,500 |
Calculate the current ratio. (Do NOT enter your answer as a percentage (i.e., do not move the decimal two places to the right). Enter it as a proportion rounded to the nearest hundredth.)
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