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Compute for the company's profitability and operating efficiency ratios in 2014. Compute for the financial health ratios of the company in 2014 and 2013. Very Berry Company Very Berry Company Statement of Comprehensive Income For the year ended December 31 Statement of financial Position For the year ended December 31 2014 2013 2014 2013 Cash 400,000 180,000 Short-term Investments 5,600,000 1,800,000 Sales 10,040,000 8,760,000 Accounts Receivable 1,480,000 1,060,000 5,680,000 4,360,000 Cost of Goods Sold 5,860,000 Inventory 1,380,000 1,640,000 4,680,000 Gross Profit 2,800,000 Other Current Assets 8,860,000 Operating Expenses Operating Income Interest Expense 1,680,000 1,20,000 28,000 1,160,000 5,040,000 5,200,000 Total Current Assets 10,860,000 3,200,000 Equipment 6,800,000 100,000 Total Assets 17,660,000 10,240,000 Net Income 3,100,000 1,192,000 Accounts Payable 6,660,000 2,620,000 Notes Payable- long term Owner, Capital Total Liabilities and Capital 2,460,000 2,120,000 8,600,000 17,660,000 5,500,000 10,240,000

Compute for the company's profitability and operating efficiency ratios in 2014. Compute for the financial health ratios of the company in 2014 and 2013. Very Berry Company Very Berry Company Statement of Comprehensive Income For the year ended December 31 Statement of financial Position For the year ended December 31 2014 2013 2014 2013 Cash 400,000 180,000 Short-term Investments 5,600,000 1,800,000 Sales 10,040,000 8,760,000 Accounts Receivable 1,480,000 1,060,000 5,680,000 4,360,000 Cost of Goods Sold 5,860,000 Inventory 1,380,000 1,640,000 4,680,000 Gross Profit 2,800,000 Other Current Assets 8,860,000 Operating Expenses Operating Income Interest Expense 1,680,000 1,20,000 28,000 1,160,000 5,040,000 5,200,000 Total Current Assets 10,860,000 3,200,000 Equipment 6,800,000 100,000 Total Assets 17,660,000 10,240,000 Net Income 3,100,000 1,192,000 Accounts Payable 6,660,000 2,620,000 Notes Payable- long term Owner, Capital Total Liabilities and Capital 2,460,000 2,120,000 8,600,000 17,660,000 5,500,000 10,240,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 5PB
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FINANCIAL RATIOS Required: a. Compute for the company's profitability and operating efficiency ratios in 2014. b. Compute for the financial health ratios of the company in 2014 and 2013. Very Berry Company Very Berry Company Statement of Comprehensive Income Statement of financial Position For the year ended December 31 For the year ended December 31 2014 2013 400,000 5,600,000 2014 2013 Cash 180,000 Short-term Investments 1,800,000 Sales 10,040,000 8,760,000 Accounts Receivable 1,480,000 1,060,000 Cost of Goods Sold 5,680,000 5,860,000 Inventory 1,380,000 1,640,000 4,360,000 1,160,000 Gross Profit 2,800,000 8,860,000 10,860,000 Other Current Assets 4,680,000 Operating Expenses Operating Income Interest Expense 1,680,000 Total Current Assets 5,040,000 1,20,000 28,000 3,200,000 Equipment 6,800,000 5,200,000 100,000 Total Assets 17,660,000 10,240,000 3,100,000 Accounts Payable Notes Payable - long term Owner, Capital Total Liabilities and Capital 2,620,000 2,120,000 Net Income 1,192,000 6,660,000 2,460,000 8,600,000 17,660,000 5,500,000 10,240,000
Transcribed Image Text:FINANCIAL RATIOS Required: a. Compute for the company's profitability and operating efficiency ratios in 2014. b. Compute for the financial health ratios of the company in 2014 and 2013. Very Berry Company Very Berry Company Statement of Comprehensive Income Statement of financial Position For the year ended December 31 For the year ended December 31 2014 2013 400,000 5,600,000 2014 2013 Cash 180,000 Short-term Investments 1,800,000 Sales 10,040,000 8,760,000 Accounts Receivable 1,480,000 1,060,000 Cost of Goods Sold 5,680,000 5,860,000 Inventory 1,380,000 1,640,000 4,360,000 1,160,000 Gross Profit 2,800,000 8,860,000 10,860,000 Other Current Assets 4,680,000 Operating Expenses Operating Income Interest Expense 1,680,000 Total Current Assets 5,040,000 1,20,000 28,000 3,200,000 Equipment 6,800,000 5,200,000 100,000 Total Assets 17,660,000 10,240,000 3,100,000 Accounts Payable Notes Payable - long term Owner, Capital Total Liabilities and Capital 2,620,000 2,120,000 Net Income 1,192,000 6,660,000 2,460,000 8,600,000 17,660,000 5,500,000 10,240,000
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