calculate the efficiency ratios, liquidity ratios, leverage ratios, and profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent. Net SalesCost of goods soldGross profitOperating expensesOperating incomeInterest expenseProfit before taxesTaxesNet incomeKPC's CorporationVertical Analysis Income StatementFor this year and last yearThis YearAmountPercent680,000100.0%410,00060.3%270,00039.75190,00027.9%80,00011.8%1.0%73,00010.7%22,0003.2%51,0007.5%7,000Last YearAmount600,000330,000270,000192,00078,0002,00076,00022,80053,200Percent100.0%55.0%45.0%32.0%13.0%0.3%12.7%3.8%8.9%

Ratio analysis is one of the important technique of analysis for financial statements. Under this,…

Answered: calculate the efficiency ratios,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 58BE

See similar textbooks

Related questions

Concept explainers

Question

calculate the efficiency ratios, liquidity ratios, leverage ratios, and profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent.

Net Sales
Cost of goods sold
Gross profit
Operating expenses
Operating income
Interest expense
Profit before taxes
Taxes
Net income
KPC's Corporation
Vertical Analysis Income Statement
For this year and last year
This Year
Amount
Percent
680,000
100.0%
410,000
60.3%
270,000
39.75
190,000
27.9%
80,000
11.8%
1.0%
73,000
10.7%
22,000
3.2%
51,000
7.5%
7,000
Last Year
Amount
600,000
330,000
270,000
192,000
78,000
2,000
76,000
22,800
53,200
Percent
100.0%
55.0%
45.0%
32.0%
13.0%
0.3%
12.7%
3.8%
8.9%

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions