Use the financial information from ray and ronald company

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Reference no: EM13578742

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.

Reference no: EM13578742

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