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Balance Sheet Cash and Marketable Securities 490 Accounts Receivable 5990 Invent

ID: 2767556 • Letter: B

Question

Balance Sheet

Cash and Marketable Securities 490

Accounts Receivable 5990

Inventories 9550

Current Assets 16030

Net property and equipment 17030

Total assets 33060

Accounts Payable 7220

Short-term debt 6800

Current Liabilities 14020

Long-term Liabilities 7010

Total Liabilities 21030

Total Owner's Equity 12030

Total equity/Liability 33060

Income Statement Revenues 30020

COGS -19950

Gross Profit 10070

Operating Expense -7960

Net operating income 2110

Interest Expense -940

Earning Before Taxes 1170

Taxes -425

Net Income 745

CommonSize Balance Sheet 2013

Cash and marketable securities $ 490 ___ %

Accounts receivable 5,990

Inventories 9,550

Current assets $ 16,030 %

Net property plant and equipment 17,030

Total assets $ 33,060 %

Accounts payable $ 7,220 %

Shortterm debt 6,800

Current liabilities $ 14,020 %

Longterm liabilities 7,010

Total liabilities $ 21,030 %

Total owners’ equity 12,030

Total liabilities and owners’ equity $ 33,060 %

b. (15 points) Prepare a common-size income statement for Carver Enterprises. Complete the common-size income statement: (Round to one decimal place.) CommonSize Income Statement 2013 Revenues$ 30,020 %

Cost of goods sold (19,950)

Gross profit $ 10,070 %

Operating expenses (7,960)

Net operating income$2,110 %

Interest expense (940)

Earnings before taxes$1170 %

Taxes (425)

Net income $ 745 %

Explanation / Answer

b. common-size income statement for Carver Enterprises

Common size Income Statement 2013

Amount $ % Total Revenue 30,020 100 Cost of Goods Sold (19,950) (66.46) Gross Profit 10,070 33.54 Operating Expenses (7,960) (26.51) Net Operating Income 2,110 7.03 Interest Expense (940) (3.13) Earnings Before Taxes 1,170 3.90 Taxes (425) (1.42) Net Income 745 2.48
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