Sales $24,381 Accumulated depreciation 4,067 Depreciation expense 408 Retained e

Question

Sales                                                        $24,381

Accumulated depreciation                       4,067

Depreciation expense                              408

Retained earnings                                    6,694      

Net income (loss)                                    (211)

Property, plant & equipment, net             6,030

Selling, general and admin expense         4,884

Accounts receivable                                1,816

Total liabilities                                         6,144

Stockholders' equity                                6,136

(b) Using the data, compute total assets and total expenses.

(c) Compute net profit margin (net income/sales) and total liabilities-to-equity ratio (total liabilities/stockholders' equity). (Round your answers to two decimal places.)

Explanation / Answer

B. total assets = Total liabilities + Stockholders' equity = 6,144 + 6,136 = $12,280

   total expenses = Sales + net loss = 24,381 + 211 = $24,592

C. net profit margin = (211)/24,381 = -0.87%

    total liabilities-to-equity ratio = 6,144 / 6,136 = 1.001:1

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