Find 1. Total Debt Ratio 2. Debt to Equity Ratio 3. Net profit Margin

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.9BE
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Find 1. Total Debt Ratio 2. Debt to Equity Ratio 3. Net profit Margin Just practice and work check
TABLE 1
INCOME STATEMENT
Sales
COGS
Other expenses
Depreciation
EBIT
Interest
Taxable income
Taxes (40%)
Net income
$4
24,092,400
17,982,000
2,878,800
786,000
2,445,600
434,400
2,011,200
804,480
1,206,720
$4
24
Dividends
Add to RE
2$
246,000
960,720
2$
BALANCE SHEET
Liabilities & Equity
Current Liabilities
Accounts Payable
Notes Payable
Total CL
Assets
Current Assets
858,816
1,735,680
2,594,496
$
2$
438,048
1,841,616
1,486,200
3,765,864
Cash
Accounts rec.
2$
Inventory
Total CA
24
Total Long-term debt $
4,590,000
Fixed assets
Net PP&E
Shareholder Equity
Common stock
24
2$
Retained earnings
Total Equity
2$
14,778,816
180,000
11,180,184
11,360,184
Total L&E
18,544,680
24
18,544,680
Total Assets
Transcribed Image Text:TABLE 1 INCOME STATEMENT Sales COGS Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income $4 24,092,400 17,982,000 2,878,800 786,000 2,445,600 434,400 2,011,200 804,480 1,206,720 $4 24 Dividends Add to RE 2$ 246,000 960,720 2$ BALANCE SHEET Liabilities & Equity Current Liabilities Accounts Payable Notes Payable Total CL Assets Current Assets 858,816 1,735,680 2,594,496 $ 2$ 438,048 1,841,616 1,486,200 3,765,864 Cash Accounts rec. 2$ Inventory Total CA 24 Total Long-term debt $ 4,590,000 Fixed assets Net PP&E Shareholder Equity Common stock 24 2$ Retained earnings Total Equity 2$ 14,778,816 180,000 11,180,184 11,360,184 Total L&E 18,544,680 24 18,544,680 Total Assets
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