Week 5

profileashleyr06

 

Below are the condensed comparative Income Statements and Balance Sheets for Zigoscar   
Corporation for 2014 and 2013.     
        
  Zigoscar Corporation     
  Comparative Income Statements     
  For the years ended December 31, 2014 and 2013     
   2014 2013  
Net Sales  $                  6,553,600  $                  6,292,800  
Cost of goods sold                       4,177,600                       4,016,800  
Gross Margin                       2,376,000                       2,276,000  
Operating expenses:      
 Selling Expenses                          953,600                       1,036,000  
 Administrative expenses                         894,400                          846,400  
   Total Expenses                       1,848,000                       1,882,400  
Income from operations                          528,000                          696,900  
Interest Expense                          131,200                             78,400  
Income before taxes                          396,800  $                315,200.00  
Income tax expense                          124,800                          113,600  
Net Income  $                      272,000  $                        21,600  
Earnings per share  $                             3.40  $                             2.52  
        
        
        
  Zigoscar Corporation     
  Comparative Balance Sheets     
   December 31, 2014 and 2013     
   2014 2013  
  Assets     
Cash   $                      162,400  $                        81,600  
Accounts receivable (net)                          471,200                          458,400  
Inventory                       1,149,600                       1,189,600  
Property, Plant & Equip (net)                      1,500,000                       1,440,000  
Total Assets  $                  3,283,200  $                  3,169,600  
  Liabilities and Stockholders Equity     
Accounts payable  $                535,200.00  $                954,400.00  
Notes payable (short term)                          400,000                          800,000  
Bonds payable                          800,000                                        -  
Common stock, $10 par value                         800,000                          800,000  
Retained earnings                          748,000                          615,200  
Total Liab. & Stockholders Equity $                  3,283,200  $                  3,169,600  
        
        
The depreciation expense in 2014 was 5,000.  From this information, please complete the following:
        
1.  Create a Statement of Cash Flows of Operations for the year 2014   
        
2.  Conduct a Horizontal analysis of the above income statement and balance sheet showing  
      the amount and percentage chages from 2013 to 2014 (Round to one decimal place).  
        
3.  Perform the following ratio analysis for 2014.    
 1.  Current Ratio      
 2.  Quick Ratio      
 3.  Receivables Turnover     
 4.  Inventory Turnover      
 5.  Profit margin      
 6.  Return on assets      
 7.  Debt to Equity ratio      
        
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