Ch 13 Excel - Problem 13-2B Part 1 Current Ratio Current Assets Current Liabilities 2015 54,860 22,370 2014 32,660 19,180 Current Ratio 2.45 1.70

# Ch 13 Excel - Problem 13-2B Part 1 Current Ratio Current...

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Problem 13-2B Part 1: Current Ratio 2015 2014 Current Assets 54,860 32,660 Current Liabilities 22,370 19,180 Current Ratio 2.45 1.70 Analyze the current ratios. What is this telling you about the company? The company's ratio is a little bit below the industry ratio of 2.5 Part 2: Vertical Analysis with Common Size Percents (add percent in column to right of dollars in ea 2015 Sales \$ 198,800 100.00% Cost of goods sold \$ 108,890 54.77% Gross Profit \$ 89,910 45.23% Selling expenses \$ 22,680 11.41% Administrative expenses \$ 16,760 8.43% Total expenses \$ 39,440 19.84% Income before taxes \$ 50,470 25.39% Income taxes \$ 6,050 3.04% Net Income \$ 44,420 22.34% Analyze the common size percents. What is this telling you about the company? Part 3: Horizontal Analysis using Trend Percents 2015 2014 Assets Selling and administrative expenses have been decreasing while cost of goods sold has been increasing stead and net income have both been decreasing. Cost of goods sold is the only thing movingunfavorably and it's h
Current Assets 151.13% 89.97% Long Term Investments 0.00% 16.00%

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