For the Year Ending 12/31/2013
|
Sales Revenue
|
|
100,000
|
|
Less Cost of Goods Sold
|
|
-60,000
|
|
Equals Gross Margin
|
|
40,000
|
|
Operating Expenses
|
|
|
|
Selling and Administration
|
15,000
|
|
|
Depreciation
|
7,000
|
|
|
Total Operating Expense
|
|
-22,000
|
|
Operating Income
|
|
18,000
|
|
Tax
|
|
-7,200
|
|
Net Income
|
|
10,800
|
Ray & Ronald
Statement of Retained Earnings
For the Year Ending 12/31/2013
|
Beginning Balance
|
|
10,000
|
|
Net Income
|
|
10,800
|
|
Less Dividends
|
|
-3,400
|
|
Ending Balance
|
|
17,400
|
Ray & Ronald
Balance Sheet
12/31/2012 & 12/31/2013
|
Category
|
2012
|
2013
|
|
Cash
|
20,000
|
25,000
|
|
Accounts Receivable
|
15,000
|
12,000
|
|
Inventory
|
30,000
|
52,000
|
|
Total Current Assets
|
65,000
|
89,000
|
|
Equipment
|
70,000
|
65,000
|
|
Less Accumulated Depreciation
|
-15,000
|
-19,000
|
|
Equipment (Net)
|
55,000
|
46,000
|
|
Total Assets
|
120,000
|
135,000
|
|
|
|
|
Accounts Payable
|
15,000
|
29,000
|
|
Long-term Liabilities
|
25,000
|
18,600
|
|
Total Liabilities
|
40,000
|
47,600
|
|
|
|
|
Common Stock
|
70,000
|
70,000
|
|
Retained Earnings
|
10,000
|
17,400
|
|
Total Equity
|
80,000
|
87,400
|
|
Total Liabilities & Equity
|
120,000
|
135,000
|
| Shares of Stock Outstanding |
2,000 |
2,000 |
| Market Price per Share Common Stock |
7 |
8 |
A) Use the financial information from Ray and Ronald Company to develop a cash flow statement for 2013.
B) Use the financial information from Ray and Ronald Company to compute any three activity ratios, any one liquidity ratio, any one debt ratio, any three profitability ratios, and any two market ratios.