Farris Company Ratzlaff Company 2015 2014 2015 2014 Condensed Income Statement F
ID: 2420549 • Letter: F
Question
Farris Company
Ratzlaff Company
2015
2014
2015
2014
Condensed Income Statement
For the Year Ended December 31, 2015
Farris Company
Ratzlaff Company
Dollars
Percent
Dollars
Percent
Farris Company
Ratzlaff Company
Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2015, and December 31, 2014.Farris Company
Ratzlaff Company
2015
2014
2015
2014
Net sales $1,588,765 $339,338 Cost of goods sold 1,029,995 241,019 Operating expenses 303,707 79,622 Interest expense 8,720 2,110 Income tax expense 54,694 6,840 Current assets 326,538 $313,001 83,372 $ 79,923 Plant assets (net) 521,060 498,015 139,618 123,075 Current liabilities 64,582 75,771 35,752 28,569 Long-term liabilities 108,999 91,111 29,938 25,389 Common stock, $10 par 502,000 502,000 122,000 122,000 Retained earnings 172,017 142,134 35,300 27,040Explanation / Answer
Answer : Vertical analysis & Ratio
Condensed Income Statement For the year ended December 31, 2015 Farris Company Ratzlaff Company Dollars Percent Dollars Percent Net Sales 1588765 100.00% 339338 100.00% Cost of Goods Sold 1029995 64.83% 241019 71.03% Gross Profit 558770 35.17% 98319 28.97% Operating Expenses 303707 19.12% 79622 23.46% EBIT 255063 16.05% 18697 5.51% Interest Expenses 8720 0.55% 2110 0.62% EBT 246343 15.51% 16587 4.89% Income Tax Exp. 54694 3.44% 6840 2.02% Net Income 191649 12.06% 9747 2.87% Return on Assets Net Income /Avg Total Assets '191649/829307 '9747/212994 '=23.11% '=4.58% Avg total asset = (Asset at beg+Assets at end)/2 (811016+847598)/2 (202998+222990)/2 '= 829307 '=212994 Return on Common stock Holder Equity Net Income/Share Holders equity '191649/502000 '9747/122000 '=0.38 '=0.08Related Questions
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