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Common-Size Income Statement by pge12085

VIEWS: 8 PAGES: 4

									                      Common-Size Income Statement
                                Company A            Company B

REVENUE:
                      Sales $ 78,000.00          $ 133,000.00

EXPENSES:
Cost of Goods Sold           14,000.00             35,000.00
Supplies Expense               8,000.00              4,000.00
Phone Expense                  5,000.00              3,000.00
Advertising Expense            7,000.00             12,000.00
Wages Expense                 22,000.00             50,000.00
Interest Expense                 400.00              1,400.00
Rent Expense                  12,000.00             18,000.00
Total Expenses              $ 68,400.00          $ 123,400.00

              NET INCOME: $ 9,600.00             $   9,600.00
                                                                      Increase    Percentage
              Balance Sheet               2002           2001
                                                                     (Decrease)    Change

ASSETS
Current Assets
Cash                                    $ 42,000.00 $ 25,000.00
Accounts Receivable                        2,000.00       5,700.00
Inventory                                  4,000.00      14,000.00
Total Current Assets                    $ 48,000.00 $ 44,700.00


Fixed Assets
Building                                $ 200,000.00 $ 200,000.00
Accumulated Depreciation, Building         4,000.00       3,000.00
Office Equipment                          14,700.00      14,700.00
  Accumulated Depreciation, Equipment      1,750.00       1,500.00
Total Fixed Assets                       220,450.00     219,200.00
Total Assets:                           $ 268,450.00 $ 263,900.00


LIABILITIES:
Current Liabilities
Bank Loan                               $ 12,000.00 $     8,000.00
Accounts Payable                             600.00       1,800.00
Total Current Liabilities               $ 12,600.00 $     9,800.00


Long-Term Liabilities
Mortgage                                $ 170,000.00 $ 180,000.00
Total Liabilities                        182,600.00     189,800.00


OWNERS EQUITY:
Capital                                   85,850.00      74,100.00
Total Liabilities & Owner's Equity:     $ 268,450.00 $ 263,900.00
                Ratio                       Answer
1.Current or Working Capital Ratio:
2.Quick Ratio or Acid Test:
3.Debt/Equity Percentages:
4.Rate of Return on Net Sales:
5.Rate of Return on Owner’s Equity:

 Note: Use Excel to calculate these figures. Do not use a
                       calculator!
                Ratio                       Answer
1.Collection Period:
2.Inventory Turnover:
3.Times Interest Earned Ratio:




 Note: Use Excel to calculate these figures. Do not use a
                       calculator!

								
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