Ex. 188
The following information (in 000) was taken from the financial statements of Lei Company:
2014 2013
Gross profit .........................................¥750,000¥840,000
Income before income taxes.............................280,000230,000
Net income..........................................200,000216,000
Net income as a percentage of net sales.....................8%9%
Instructions
(a)Compute the net sales for each year.
(b)Compute the cost of goods sold in dollars and as a percentage of net sales for each year.
(c)Compute operating expenses in dollars and as a percentage of net sales for each year. (Income taxes are not operating expenses).
Ex. 189
Selected financial statement data for Morton Company are presented below.
December 31, 2014December 31, 2013
Inventories$ 85,000$65,000
Accounts receivable (net)100,00080,000
Short-term investments25,00018,000
Cash 20,00030,000
Total current liabilities100,00090,000
Ex. 189(Cont.)
During 2014, net sales were ¥810,000, and cost of goods sold was ¥615,000.
Instructions
Compute the following ratios at December 31, 2014:
(a)Current.
(b)Acid-test.
(c)Accounts receivable turnover.
(d)Inventory turnover.