OGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 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 Average day’s collection ratio. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.) 2020 2019 Average day’s collection ratio Days
OGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 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 Average day’s collection ratio. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.) 2020 2019 Average day’s collection ratio Days
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
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| LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 |
||||
| 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: | ||||
| $ | 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 Average day’s collection ratio. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)
|
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