Unit One Problems
3. The income statement items are arranged in the following order: sales, gross profit shares
outstanding, cost of goods sold, gross profit, selling and admin expense, depreciation expense,
operating profit, interest expense, earnings before taxes, taxes, earnings after taxes, preferred
stock dividends, earning available to common stockholders, shares outstanding, earnings per
10. The following balance sheet items are considered current: accounts payable, prepaid
expenses, inventory, accrued wages payable, accounts receivable and marketable securities.
The following balance sheet items are noncurrent: retained earnings, plant and equipment,
common stock, bonds payable, capitol in excess of par and preferred stock.
Profit margin: 6.1%
Return on Assets: 13.3%
Return on Equity: 20.7%
Receivables Turnover: 12.4
Average Collection Period: 29.5 days