OG Corporation’s balance sheet and income statement is listed below. Balance Sheet This Year Last Year Cash 50,000 40,000 Accounts receivable 80,000 60,000 Inventories 180,000 110,000 Plant & equipment 300,000 260,000 Less accumulated depreciation -40,000 -20,000 Total assets 570,000 450,000 Accounts payable 100,000 150,000 Accrued liabilities 70,000 50,000 Mortgage payable 80,000 Common stock 130,000 90,000 Retained earnings 190,000 160,000 Total liabilities and equity 570,000 450,000 Income Statement This Year Last Year Net Sales 680,000 600,000 Cost of goods sold 410,000 330,000 Gross profit 270,000 270,000 Operating expenses 190,000 192,000 Operating income 80,000 78,000 Interest expense 7,000 2,000 Profit before taxes 73,000 76,000 Taxes 22,000 22,800 Net income 51,000 53,200 Compute for the following financial ratios. Support answers with solutions. Assets Turn-over ratio Gross Margin Ratio Return on Assets Ratio
OG Corporation’s balance sheet and income statement is listed below.
Balance Sheet This Year Last Year
Cash 50,000 40,000
Accounts receivable 80,000 60,000
Inventories 180,000 110,000
Plant & equipment 300,000 260,000
Less accumulated
Total assets 570,000 450,000
Accounts payable 100,000 150,000
Accrued liabilities 70,000 50,000
Mortgage payable 80,000
Common stock 130,000 90,000
Total liabilities and equity 570,000 450,000
Income Statement This Year Last Year
Net Sales 680,000 600,000
Cost of goods sold 410,000 330,000
Gross profit 270,000 270,000
Operating expenses 190,000 192,000
Operating income 80,000 78,000
Interest expense 7,000 2,000
Profit before taxes 73,000 76,000
Taxes 22,000 22,800
Net income 51,000 53,200
Compute for the following financial ratios. Support answers with solutions.
- Assets Turn-over ratio
- Gross Margin Ratio
Return on Assets Ratio
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