Question

    income statement Sales 205,000 cost of goods sold -97,000 salaries expense -24,000 depreciation expense -16,000...

    income statement

Sales

205,000

cost of goods sold

-97,000

salaries expense

-24,000

depreciation expense

-16,000

interest expense

-2,400

loss on equipment disposal

-2,500

net income

63,100

Statement of Retained Earnings

Beginning Balance - Retained Earnings

                  6,000

Plus - Net Income

                63,100

Less - Dividends

(41,500)

Ending Balance - Retained Earnings

27,600

Balance sheets

2018

2019

change

Assets:

Cash

13,000

64,600

51,600

Accounts Receivable

25,000

19,000

(6,000)

Inventory

19,000

13,000

(6,000)

prepaid expenses

0

0

0

Equipment

60,000

41,000

(19,000)

Accum. Depr - Equipment

(22,000)

(26,000)

(4,000)

     total assets

95,000

111,600

Liabilities:

Accounts Payable

11,000

9,000

(2,000)

accrued Liabilities

13,000

10,000

(3,000)

Bonds Payable

40,000

40,000

0

     total liabilities

64,000

59,000

Shareholders’ Equity:

Common Stock

25,000

25,000

0

Retained Earnings

6,000

27,600

21,600

      total equity

31,000

52,600

         total liabilities and shareholder equity

95,000

111,600

Based on the above  financial statements, calculate the following ratios for 2019:

A. Current Ratio

B. Gross Profit Percentage

C. Debt Ratio

D. Debt to Equity Ratio

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