Ch.+13+Problem+Solutions

Ch.+13+Problem+Solutions - Problem 13-1B (60 minutes) Part...

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Problem 13-1B (60 minutes) Part 1 Current ratio: December 31, 2010: $53,776 / $22,432 = 2.4 to 1 December 31, 2009: $42,494 / $22,230 = 1.9 to 1 December 31, 2008: $55,118 / $21,632 = 2.5 to 1 Part 2 DANNO CORPORATION Common-Size Comparative Income Statements For Years Ended December 31, 2010, 2009, and 2008 2010 2009 2008 Sales . ..................................................... 100.00% 100.00% 100.00% Cost of goods sold . ............................. 60.20 63.30 64.00 Gross profit . ......................................... 39.80 36.70 36.00 Selling expenses . ................................. 14.20 13.80 13.20 Administrative expenses . ................... 9.00 8.80 8.30 Total expenses . .................................... 23.20 22.60 21.50 Income before taxes . ........................... 16.60 14.10 14.50 Income taxes . ....................................... 3.09 2.89 2.94 Net income . .......................................... 13.51 % 11.21 % 11.56 % Problem 13-1B (Concluded)
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This note was uploaded on 01/22/2011 for the course MGT 11A taught by Professor Armstrong during the Fall '08 term at UC Davis.

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Ch.+13+Problem+Solutions - Problem 13-1B (60 minutes) Part...

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