Roy's Toys is a manufacturer of toys and children's products. The following are selected items appearing...

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Roys Toys is a manufacturer of toys and childrens products. The following are selected items appearing in a recent balance

$ 49 156 30 Cash and short-term investments Receivables Inventories Prepaid expenses and other current assets Total current l

Check my we Selected items from successive annual reports of Middlebrook, Inc. appear as follows. Year 1 Total assets (45 of

Sales Cost of goods sold Gross profit Operating expenses Net income Year 2 $ 473,000 330.000 $ 143,000 130,000 $ 13,eee Year

Return to questo .. Prepare common size income statements for Price Company, a sole proprietorship for the two years shown as

business accounting

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Answer 1

Answer #1


		year 2		Year 1
a	Current ratio	2.4		1.4
		(481000*40%)/80000		(359000*40%)/100000

b	Debt ratio	37%		42%
		(80000+100000)/481000		(100000+50000)/359000

c	Net income for the current year = 201000+16000-109000
	Net income for the current year = 108,000
	EPS	108000	/	20000
	EPS =	5.4


	Common size statement
		Year-2			Year-1
	Sales	$473,000	100%	(473000/473000)	$405,000	100.00%	(405000/405000)
	Cost of goods sold	$330,000	70%	(330000/473000)	$268,000	66.17%	(268000/405000)
	Gross profit	$143,000	30%	(143000/473000)	$137,000	33.83%	(137000/405000)
	Operating expenses	$130,000	27%	(130000/473000)	$116,000	28.64%	(116000/405000)
	Net income	$13,000	3%	(13000/473000)	$21,000	5.19%	(21000/405000)

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Answer 2

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