MERAMAC CORPORATION Comparative Balance Sheets December 31, 2018 and 201A 201B 201A Amount Perceut Amount Perceut (of TA) (of TA) ASSETS Current Assets: Cash $200,000 $400,000 Accounts Receivable 1,500,000 800,000 lventory 3,000,000 1,200,000 Prepaid expenses 100,000 100,000 Total current assets $4,800,000 $2,500,000 Plant and equipment 5,170,000 5,400,000 Total Assets (TA) $0,970,000 100 % $7,900,000 100 %% 201B 201A Amount Percent Amount Percent (of TL + SE) (of TL + SE) LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Current Liabilities $2,500,000 $1,000,000 Bonds payable, 129% 2,000,000 2,000,000 Total liabilities $4,500,000 $3,000,000 Stockholders' Equity Commce Stock 2,500,000 2,500,000 Retained earnings 2,970,000 2,400,000 Total Stockholders' equity $5,470,000 $4,900,000 Total Liabilities (IL) and Scockholders' Equity (SE) $9,970,000 100 %6 $7,900,000 100 % MERAMAC CORPORATION Comparative Income Statements For the Years Ended December 31, 201B and 201A 201B 201A Amount Percent Amount Percent (of Sales) (of Sales) Sales $20,000,000 100.0% $15,000,000 100% Less: Cost of goods sold -13,000,000 7.00 % -9,000,000 Gross profit 7,000,000 6,000,000 Less operating expenses -5,260,000 -4,560,000 Net operating income 1,740,000 1,440,000 % Less: Interest expense -240,000 -240,000 ........ Net income before taxes 1,500,000 1,200,000 Less: Income taxes (30%) -450,000 -360,000 Net Income $1,050,000 $840,000
MERAMAC CORPORATION Comparative Balance Sheets December 31, 2018 and 201A 201B 201A Amount Perceut Amount Perceut (of TA) (of TA) ASSETS Current Assets: Cash $200,000 $400,000 Accounts Receivable 1,500,000 800,000 lventory 3,000,000 1,200,000 Prepaid expenses 100,000 100,000 Total current assets $4,800,000 $2,500,000 Plant and equipment 5,170,000 5,400,000 Total Assets (TA) $0,970,000 100 % $7,900,000 100 %% 201B 201A Amount Percent Amount Percent (of TL + SE) (of TL + SE) LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Current Liabilities $2,500,000 $1,000,000 Bonds payable, 129% 2,000,000 2,000,000 Total liabilities $4,500,000 $3,000,000 Stockholders' Equity Commce Stock 2,500,000 2,500,000 Retained earnings 2,970,000 2,400,000 Total Stockholders' equity $5,470,000 $4,900,000 Total Liabilities (IL) and Scockholders' Equity (SE) $9,970,000 100 %6 $7,900,000 100 % MERAMAC CORPORATION Comparative Income Statements For the Years Ended December 31, 201B and 201A 201B 201A Amount Percent Amount Percent (of Sales) (of Sales) Sales $20,000,000 100.0% $15,000,000 100% Less: Cost of goods sold -13,000,000 7.00 % -9,000,000 Gross profit 7,000,000 6,000,000 Less operating expenses -5,260,000 -4,560,000 Net operating income 1,740,000 1,440,000 % Less: Interest expense -240,000 -240,000 ........ Net income before taxes 1,500,000 1,200,000 Less: Income taxes (30%) -450,000 -360,000 Net Income $1,050,000 $840,000
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
Related questions
Question
Calculate Ratios. For 201B and 201A income statements and
Transcribed Image Text:MERAMAC CORPORATION
Comparative Balance Sheets
December 31, 2018 and 201A
201B
201A
Amount
Perceut
Amount
Perceut
(of TA)
(of TA)
ASSETS
Current Assets:
Cash
$200,000
$400,000
Accounts Receivable
1,500,000
800,000
lventory
3,000,000
1,200,000
Prepaid expenses
100,000
100,000
Total current assets
$4,800,000
$2,500,000
Plant and equipment
5,170,000
5,400,000
Total Assets (TA)
$0,970,000
100 %
$7,900,000
100 %%
201B
201A
Amount
Percent
Amount
Percent
(of TL + SE)
(of TL + SE)
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current Liabilities
$2,500,000
$1,000,000
Bonds payable, 129%
2,000,000
2,000,000
Total liabilities
$4,500,000
$3,000,000
Stockholders' Equity
Commce Stock
2,500,000
2,500,000
Retained earnings
2,970,000
2,400,000
Total Stockholders' equity
$5,470,000
$4,900,000
Total Liabilities (IL) and
Scockholders' Equity (SE)
$9,970,000
100 %6
$7,900,000
100 %
Transcribed Image Text:MERAMAC CORPORATION
Comparative Income Statements
For the Years Ended December 31, 201B and 201A
201B
201A
Amount
Percent
Amount
Percent
(of Sales)
(of Sales)
Sales
$20,000,000
100.0%
$15,000,000
100%
Less: Cost of goods sold
-13,000,000
7.00 %
-9,000,000
Gross profit
7,000,000
6,000,000
Less operating expenses
-5,260,000
-4,560,000
Net operating income
1,740,000
1,440,000
%
Less: Interest expense
-240,000
-240,000
........
Net income before taxes
1,500,000
1,200,000
Less: Income taxes (30%)
-450,000
-360,000
Net Income
$1,050,000
$840,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education