Comparative Balance Sheet Current Year Previous Year Year Before Current Assets Cash $50,000 $100,000 $90,000 Accounts Receivable, net $275,000 $150,000 $100,000 Inventory $580,000 $400,000 $250,000 Prepaid Expenses $25,000 $30,000 $10,000 Total Current Assets $930,000 $680,000 $450,000 Property & Equipment, net $115,000 $150,000 $140,000 Total Assets $1,045,000 $830,000 $590,000 Liabilities & Owner's Equity Current Liabilities Accounts Payable $410,000 $265,000 $190,000 Short-term Payables $175,000 $90,000 $50,000 Total Current Liabilities $585,000 $355,000 $240,000 Long Term Bonds Payable (12%) $50,000 $150,000 $150,000 Total Liabilities $635,000 $505,000 $390,000 Stockholder's Equity Common Stock (100,000 shares) $200,000 $200,000 $200,000 Retained Earnings $248,000 $130,000 $73,000 Total Liabilities and Shareholder's Equity $1,083,000 $835,000 $663,000 Drood Company Comparitive Income Statements Current Year Previous Year Sales $1,100,000 $875,000 Less: Cost of Goods Sold $550,000 $490,000 Gross Margin $550,000 $385,000 Less: Selling & Admin Expenses $295,000 $240,000 Operating Income $255,000 $145,000 Less: Interest Expense $12,000 $18,000 Income Before Taxes $243,000 $127,000 Less: Income Taxes (40%) $97,200 $50,800 Net Income $145,800 $76,200 Less: Dividends $27,800 $19,200 Net Income, Retained $118,000 $57,000 9 Gross Margin % 10 Has operating income grown faster than sales? 11 Identify 3 significant changes on the balance sheet between current year and previous year (ignore Year Before)
Comparative Balance Sheet Current Year Previous Year Year Before Current Assets Cash $50,000 $100,000 $90,000 Accounts Receivable, net $275,000 $150,000 $100,000 Inventory $580,000 $400,000 $250,000 Prepaid Expenses $25,000 $30,000 $10,000 Total Current Assets $930,000 $680,000 $450,000 Property & Equipment, net $115,000 $150,000 $140,000 Total Assets $1,045,000 $830,000 $590,000 Liabilities & Owner's Equity Current Liabilities Accounts Payable $410,000 $265,000 $190,000 Short-term Payables $175,000 $90,000 $50,000 Total Current Liabilities $585,000 $355,000 $240,000 Long Term Bonds Payable (12%) $50,000 $150,000 $150,000 Total Liabilities $635,000 $505,000 $390,000 Stockholder's Equity Common Stock (100,000 shares) $200,000 $200,000 $200,000 Retained Earnings $248,000 $130,000 $73,000 Total Liabilities and Shareholder's Equity $1,083,000 $835,000 $663,000 Drood Company Comparitive Income Statements Current Year Previous Year Sales $1,100,000 $875,000 Less: Cost of Goods Sold $550,000 $490,000 Gross Margin $550,000 $385,000 Less: Selling & Admin Expenses $295,000 $240,000 Operating Income $255,000 $145,000 Less: Interest Expense $12,000 $18,000 Income Before Taxes $243,000 $127,000 Less: Income Taxes (40%) $97,200 $50,800 Net Income $145,800 $76,200 Less: Dividends $27,800 $19,200 Net Income, Retained $118,000 $57,000 9 Gross Margin % 10 Has operating income grown faster than sales? 11 Identify 3 significant changes on the balance sheet between current year and previous year (ignore Year Before)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 13P
Related questions
Question
Comparative |
|||||||
Current Year | Previous Year | Year Before | |||||
Current Assets | |||||||
Cash | $50,000 | $100,000 | $90,000 | ||||
$275,000 | $150,000 | $100,000 | |||||
Inventory | $580,000 | $400,000 | $250,000 | ||||
Prepaid Expenses | $25,000 | $30,000 | $10,000 | ||||
Total Current Assets | $930,000 | $680,000 | $450,000 | ||||
Property & Equipment, net | $115,000 | $150,000 | $140,000 | ||||
Total Assets | $1,045,000 | $830,000 | $590,000 | ||||
Liabilities & Owner's Equity | |||||||
Current Liabilities | |||||||
Accounts Payable | $410,000 | $265,000 | $190,000 | ||||
Short-term Payables | $175,000 | $90,000 | $50,000 | ||||
Total Current Liabilities | $585,000 | $355,000 | $240,000 | ||||
Long Term Bonds Payable (12%) | $50,000 | $150,000 | $150,000 | ||||
Total Liabilities | $635,000 | $505,000 | $390,000 | ||||
Common Stock (100,000 shares) | $200,000 | $200,000 | $200,000 | ||||
$248,000 | $130,000 | $73,000 | |||||
Total Liabilities and Shareholder's Equity | $1,083,000 | $835,000 | $663,000 | ||||
Drood Company | |||||||
Comparitive Income Statements | |||||||
Current Year | Previous Year | ||||||
Sales | $1,100,000 | $875,000 | |||||
Less: Cost of Goods Sold | $550,000 | $490,000 | |||||
Gross Margin | $550,000 | $385,000 | |||||
Less: Selling & Admin Expenses | $295,000 | $240,000 | |||||
Operating Income | $255,000 | $145,000 | |||||
Less: Interest Expense | $12,000 | $18,000 | |||||
Income Before Taxes | $243,000 | $127,000 | |||||
Less: Income Taxes (40%) | $97,200 | $50,800 | |||||
Net Income | $145,800 | $76,200 | |||||
Less: Dividends | $27,800 | $19,200 | |||||
Net Income, Retained | $118,000 | $57,000 | |||||
9 | Gross Margin % | ||||||||||
10 | Has operating income grown faster than sales? | ||||||||||
11 | Identify 3 significant changes on the balance sheet between current year and previous year (ignore Year Before) | ||||||||||
12 | If you were a loan officer, would you lend Edwin Co money? Why or why not? | ||||||||||
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