As the accounting manager of Spring Creek Plastics, Inc., you have been asked to calculate the following financial ratios for the company's 2015 annual report. Use the balance sheet and the income statement on page 528 for Spring Creek.
Spring Creek Plastics, Inc.
Balance Sheet As of December 31,2015
Assets | ||
Cash | $250,000 | |
Accounts Receivable | 325,400 | |
Merchandise Inventory | 416,800 | |
Marketable Securities | 88,700 | |
Supplies | 12,100 | |
Total Current Assets | $1,093,000 | |
Land and Building | 1,147,000 | |
Fixtures and Equipment | 868,200 | |
Total Property. Plant, and Equipment | 2,015,200 | |
Total Assets | $3,108,200 | |
Liabilities and Owner's Equity | ||
Accounts Payable | $286,500 | |
Notes Payable (6-month) | 153,200 | |
Total Current Liabilities | $439,700 | |
Mortgage Payable | 325,700 | |
Notes Payable (4-year) | 413,100 | |
Total Long-Term Liabilities | 738,800 | |
Total Liabilities | 1,178,500 | |
Owner's Equity | 1,929,700 | |
Total Liabilities and Owner's Equity | $3,108,200 |
Spring Creek Plastics, Inc. Income Statement, 2015
Net Sales | $1,695,900 | |
Merchandise Inventory. Jan. 1 | $767,800 | |
Net Purchases | 314,900 | |
Freight In | 33,100 | |
Goods Available for Sale | 1,115,800 | |
Merchandise Inventory. Dec. 31 | 239,300 | |
Cost of Goods Sold | 876,500 | |
Gross Margin | 819,400 | |
Total Operating Expenses | 702,300 | |
Income before Taxes | 117,100 | |
Taxes | 35,200 | |
Net Income | $81,900 |
Debt-to-assets ratio
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