Home / Questions / The following income statement and balance sheets for Laser World are provided
The following income statement and balance sheets for Laser World are provided:
|
Laser World Income Statement For the year-ended December 31, 2015 |
||||
|
|
|
|
|
|
|
Sales revenue |
|
|
$ 2,200,000 |
|
|
Cost of goods sold |
|
|
1,500,000 |
|
|
Gross profit |
|
|
700,000 |
|
|
Expenses: |
|
|
|
|
|
Operating expenses |
|
|
350,000 |
|
|
Depreciation expense |
|
|
70,000 |
|
|
Loss on sale of land |
|
|
5,000 |
|
|
Interest expense |
|
|
25,000 |
|
|
Income tax expense |
|
|
60,000 |
|
|
Total expenses |
|
|
510,000 |
|
|
Net income |
|
|
$ 190,000 |
|
|
|
|
|
|
|
|
Laser World Balance Sheet December 31 |
|||||
|
Assets |
2015 |
|
2014 |
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
$ 120,000 |
|
$ 112,000 |
|
|
|
Accounts receivable |
90,000 |
|
70,000 |
|
|
|
Inventory |
120,000 |
|
100,000 |
|
|
|
Prepaid rent |
10,000 |
|
10,000 |
|
|
|
Long-term assets: |
|
|
|
|
|
|
Land |
260,000 |
|
200,000 |
|
|
|
Equipment |
350,000 |
|
210,000 |
|
|
|
Accumulated depreciation |
(70,000) |
|
(42,000) |
|
|
|
Total assets |
$ 880,000 |
|
$ 660,000 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|||||
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ 55,000 |
|
$ 75,000 |
|
|
|
Interest payable |
8,000 |
|
7,000 |
|
|
|
Income tax payable |
15,000 |
|
12,000 |
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
Notes payable |
400,000 |
|
300,000 |
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Common stock |
200,000 |
|
200,000 |
|
|
|
Retained earnings |
202,000 |
|
66,000 |
|
|
|
Total liabilities and equity |
$ 880,000 |
|
$ 660,000 |
|
|
|
|
|
|
|
|
|
Earnings per share for the year-ended December 31, 2015, is $1.90. The closing stock price on December 31, 2015, is $30.40.
Calculate the following profitability ratios for 2015:
|
1. Gross profit ratio |
4. Asset turnover |
|
2. Return on assets |
5. Return on equity |
|
3. Profit margin |
6. Price-earnings ratio |
Jan 27 2020 View more View Less
Repeat Prob. 4–107 with the heat transfer coefficient at the top and the bottom surfaces of each block being doubled to 80 W/m2 ·K.Problem. 4–107Consider a cubic block wh...
Jul 21 2020The Allied Group has acquired Kramer Industries and is now considering additional investments. They have determined that there is a firm that is a good fit for their port...
Apr 16 2020Two Doors Down, Inc., has weekly credit sales of $39,200, and the average collection period is 40 days.What is the company's average accounts receivable figure? (Do not r...
May 12 2021Most foreign exchange transactions are through the U.S. dollar. If the transaction is expressed as the foreign currency per dollar this known as ________ whereas ______...
Apr 17 2021On January 1, 2016, you made an initial deposit of $400 into a savings account to begin saving to pay for 3 years of horseback riding lessons that you plan to begin on Ja...
Nov 23 2019Refer to Mixon company's balance sheets in Exercise 1-03. Express the balance sheets in common-size percents. Round to the nearest one-tenth of a percent.200620052004...
May 23 2020Imagine a society that produces military goods and consumer goods, which we'll call "guns" and "butter."b. Show a point that is impossible for the economy to achieve. Sho...
Jul 11 2021stion 3 vet ered The series 2 coses Select one: ed out of O a. converges to O lag question b. converges to 1 c. diverges d. converges to TT
Apr 23 2021In 2008, Upper Crust had cash flows from investing activities of â$275,000 and cash flows from financing activities of â$164,000. The balance in the firm's cash accou...
May 22 2021A publicly traded company that I chose is twitter below I identified the resources that would be used (besides the financial statements) to analyze the financial position...
Aug 11 2021