## MARNI COMPANY### Income Statement### For the Year Ended December 31#### Sales (all on credit)- **$2,000,000**#### Cost of Goods Sold- **$1,750,000**#### Gross Profit- **$250,000**#### Sales and Administrative Expenses- **$30,000**#### Fixed Lease Expenses- **$10,000**#### Depreciation- **$60,000**#### Operating Profit- **$150,000**#### Interest Expense- **$25,000**#### Profit Before Taxes- **$125,000**#### Taxes (40%)- **$50,000**#### Net Income- **$75,000****Note:** Refer to the tables above. The firm's inventory turnover ratio is ____.This image presents the Income Statement of Marni Company for the year ending on December 31. Each section provides detailed insights into the company's financial performance, listing revenues, expenses, and profits. ### Marni Company Financial Statements#### Balance Sheet*As of December 31***Assets:**- Cash: $50,000- Accounts Receivable: $100,000- Inventory: $200,000- Net Plant and Equipment: $650,000**Total Assets:** $1,000,000---**Liabilities and Stockholders' Equity:****Liabilities:**- Accounts Payable: $100,000- Accrued Expenses: $90,000- Long-term Debt: $250,000**Stockholders' Equity:**- Common Stock: $100,000- Paid-in Capital: $50,000- Retained Earnings: $410,000**Total Liabilities and Stockholders' Equity:** $1,000,000---#### Income Statement*For the year ended December 31*- **Sales (all on credit):** $2,000,000- **Cost of Goods Sold (COGS):** $1,750,000- **Gross Profit:** $250,000- **Sales and Administrative Expenses:** $30,000--- **Explanation:**- **Balance Sheet Overview:** - **Assets:** Resources owned by Marni Company, divided into categories like cash, receivables, inventory, and equipment. - **Liabilities:** Funds that the company owes to external parties, such as accounts payable, accrued expenses, and long-term debt. - **Stockholders' Equity:** Funds attributable to shareholders, including stock, paid-in capital, and retained earnings. - **Income Statement Overview:** - Summarizes the company's financial performance over the fiscal year, showing total sales, cost of goods sold, and gross profit. - From the gross profit, sales and administrative expenses are subtracted to provide insight into operating profitability.These financial statements provide a snapshot of Marni Company's fiscal health as of December 31, including detailed accounts of assets, liabilities, equity, sales, and expenses.

Inventory turnover ratio is a measure to determine how many times a company has sold its inventory…

Paid-in capital Retained earnings Total liabilities and stockholders' equity 50,000 410,000 $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Fixed lease expenses $2,000,000 1,750,000 $250,000 30,000 10,000 Depreciation Operating profit Interest expense 60,000 $150,000 25,000 $ 125,000 50,000 %24 Profit before taxes Taxes (40%) Net income 75,000 Refer to the tables above. The firm's inventory turnover ratio is

Paid-in capital Retained earnings Total liabilities and stockholders' equity 50,000 410,000 $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Fixed lease expenses $2,000,000 1,750,000 $250,000 30,000 10,000 Depreciation Operating profit Interest expense 60,000 $150,000 25,000 $ 125,000 50,000 %24 Profit before taxes Taxes (40%) Net income 75,000 Refer to the tables above. The firm's inventory turnover ratio is

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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