The following information applies to the questions displayed below] The comparat
ID: 2515434 • Letter: T
Question
The following information applies to the questions displayed below] The comparative financial statements for Prince Company are below ar ar Income statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (10% interest) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity $190,000 112,000 78,000 56,000 22,000 8,000 $167,000 100,000 67000 53,000 14,000 4000 14000 S 10,000 $4,000 14,000 40,000 45,000 $ 7000 18,000 34.000 38,000 $103,00097,000 16,000 17000 45,000 30,000 5,000 $ 97000 45,000 30,000 12,000 $103,000Explanation / Answer
2nd Year
(individual item amount/total sales revenue)*100
sales revenue
190000
100%
less cost of goods sold
112000
58.95%
gross profit on sales
78000
41.05%
operating expense
56000
29.47%
pretax income
22000
11.58%
income tax
8000
4.21%
net income
14000
7.37%
2nd Year
(individual item amount/total sales revenue)*100
sales revenue
190000
100%
less cost of goods sold
112000
58.95%
gross profit on sales
78000
41.05%
operating expense
56000
29.47%
pretax income
22000
11.58%
income tax
8000
4.21%
net income
14000
7.37%
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