The comparative financial statements prepared at December 31, 2015, for Prince C
ID: 2483412 • Letter: T
Question
The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data:
Present component percentages for 2015 only.
Respond to the following for 2015:
What was the gross profit percentage?
What was the income tax rate?
Compute the profit margin?
Compute the debt-to-equity ratio?
What was the return on equity?
What was the return on assets?
The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data:
Explanation / Answer
Ans.1
Sale Revenue 100
COGS (%) = cogs/Sales*100
=112000/190000*100= 58.94
GP on Sales 41.06
Operating Exp
=56000/190000*100 29.47
Pretax Income 11.59
Income Taxes
=8000/190000 4.21
Net Income 7.38
Ans.1
Sale Revenue 100
COGS (%) = cogs/Sales*100
=112000/190000*100= 58.94
GP on Sales 41.06
Operating Exp
=56000/190000*100 29.47
Pretax Income 11.59
Income Taxes
=8000/190000 4.21
Net Income 7.38
1(b)
Cash 3.88
AR 13.59
Inventory 38.84
Operational Assets 43.69
Total Assets 100.00
Current Liability 15.53
Long Term Liabilities 43.69
Commen Stock 29.13
Retained Earning 11.65
Total Liabilities 100.00