176. Express the following income statement information in common-size percentages (round to nearest whole percent). Comment on the results.
HaansCorp.
Comparative Income Statements
For Years Ended December 31, 2016and 2015
2016
2015
Sales............................
$1,200,000
$1,000,000
Cost of goods sold...................
804,000
650,000
Gross profit.......................
$ 396,000
$ 350,000
Selling expenses....................
132,000
120,000
Administrative expenses...............
180,000
150,000
Net income.......................
$ 84,000
$ 80,000
177. Use the balance sheets of Glover shown below to calculate the following ratios for 2016 (round to the hundredths):(a) Current ratio.(b) Acid-test ratio.(c) Debt ratio.(d) Equity ratio.
GloverCompany
Balance Sheets
December 31, 2016and 2015
Assets:
Cash............................
$ 43,000
$ 22,000
Accounts receivable..................
38,000
42,000
Merchandise inventory...............
61,000
52,000
Prepaid insurance...................
6,000
9,000
Long-term investments...............
49,000
20,000
Plant assets (net)...................
218,000
Total assets.......................
$415,000
$363,000
Liabilities and Equity:
Current liabilities...................
$ 62,000
$ 75,000
Long-term liabilities..................
45,000
36,000
Common stock.....................
Retained earnings...................
158,000
102,000
Total liabilities and equity..............
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here