Create a spreadsheet to calculate the below financial ratios

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Reference no: EM13899104

Assessment file to create a spreadsheet to calculate the below financial ratios. Complete a comparison between the two years for this company and remember to use Excel formulas and link cells when possible. Be sure to explain how the ratios compare (expand beyond just stating which one is larger) and why.

Acid-test (quick) ratio
Current ratio
Accounts receivable turnover
Inventory turnover
Gross profit ratio
Net income to sales
Rate earned on total assets
Rate earned on common stock equity
Debt to total assets
Times interest earned

THE PRINTER COMPANY Comparative Income Statement For the Years Ended December 31, 2010 and 2009
Revenue:	2010	2009
Sales	895,000	705,450
Less Sales Returns and Allowances	12,500	11,650
Net Sales	882,500	693,800
Cost of Goods Sold
Merchandise Inventory, January 1	82,500	80,000
Net Purchases	306,000	262,000
Total Merchandise Available for Sale	388,500	342,000
Less Merchandise Inventory, December 31	85,000	82,500
Cost of Goods Sold	303,500	259,500
Gross Profit on Sales	579,000	434,300
Operating Expenses
Selling Expenses
Sales Salaries Expense	87,000	79,000
Payroll Tax Expense-Selling	8,700	7,900
Other Selling Expenses	25,800	15,200
Total Selling Expenses	121,500	102,100
General and Administrative Expenses
Officers Salaries Expense	130,000	110,000
Payroll Tax Expense-Administrative	13,000	11,000
Depreciation Expense	8,250	8,250
Other General and Administrative Expenses	9,450	7,000
Total General and Administrative Expenses	160,700	136,250
Total Operating Expenses	282,200	238,350
Net Income Before Income Taxes	296,800	195,950
Income Tax Expense	89,040	58,785
Net Income After Income Taxes	207,760	137,165

THE PRINTER COMPANY Comparative Balance Sheet December 31, 2010 and 2009
Assets	2010	2009
Current Assets
Cash	88,375	47,256
Accounts Receivable	60,000	37,500
Merchandise Inventory	85,000	82,500
Prepaid Expenses	9,500	5,000
Supplies	1,000	434
Total Current Assets	243,875	172,690
Property, Plant, and Equipment
Land	75,000	75,000
Building and Equipment	82,500	82,500
Less Accumulated Depreciation	(33,000)	(24,750)
Net Book Value-Building and Equipment	49,500	57,750
Total Property, Plant, and Equipment	124,500	132,750
Total Assets	368,375	305,440
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	22,600	55,542
Sales Tax Payable	1,000	3,000
Payroll Taxes Payable	1,142	1,025
Income Taxes Payable	1,000	5,000
Total Current Liabilities	25,742	64,567
Long-Term Liabilities
Mortgage Payable	39,000	45,000
Total Long-Term Liabilities	39,000	45,000
Total Liabilities	64,742	109,567
Stockholders' Equity
Common Stock ($1 par, 10,000 shares authorized 10,000 shares issued and outstanding)	10,000	10,000
Paid-in-Capital - Common Stock	10,000	10,000
Retained Earnings	283,633	175,873
Total Stockholders' Equity	303,633	195,873
Total Liabilities and Stockholders' Equity	368,375	305,440

Reference no: EM13899104

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