LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 2023 2022 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, 2022 and 2023 2023 2022 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 asset turnover ratio.for 2022 and 2023 Note: Enter your response as a decimal rounded to 2 places.
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 2023 2022 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, 2022 and 2023 2023 2022 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 asset turnover ratio.for 2022 and 2023 Note: Enter your response as a decimal rounded to 2 places.
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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Question
LOGIC COMPANY | ||
Comparative Income Statement | ||
For Years Ended December 31, 2022 and 2023 | ||
2023 | 2022 | |
---|---|---|
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, 2022 and 2023 | ||
2023 | 2022 | |
---|---|---|
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 asset turnover ratio.for 2022 and 2023
Note: Enter your response as a decimal rounded to 2 places.
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