ACCT212_Project 2_NicholeD

ACCT212_Project 2_NicholeD - = 305000 = 31.87% 44.10% Net...

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Medical Products Inc Common Size Income Statement Compared with Industry Average Year Ended December 31, 20x5 Net sales 100% 100% Cost of goods sold 68.12% 55.90% Gross Profit 31.87% 44.10% Operating expenses 20.89% 28.10% Operating income 10.97% 16.00% Other expenses 0.31% 2.40% Net income 10.65% 13.60% Medical Products Inc Common Size Balance Sheet Compared with Industry Average Year Ended December 31, 20x5 Current Assets 77.14% 74.40% Fixed Assets, Net 18.57% 20.00% Intangible Assets, Net 3.81% 0.60% Other Assets 0.48% 5.00% Total 100% 100% Current Liability 38.89% 45.60% Long-Term Liability 18.10% 19.00% Stock Holders Equity 43.01% 35.40% Total 100% 100% Medical Products Industry Average Medical Products Industry Average
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Medical Producst Profitability analysis 20x5 A. Rate of return on gross profit = Gross profit
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Unformatted text preview: = 305000 = 31.87% 44.10% Net Sales 957000 B. Rate of return on operating profit = Operating income = 105000 = 10.97% 16.00% Net Sales 957000 C. Rate of return on sales = Net income = 102000 = 10.66% 13.60% Net sales 957000 The performance is worse than the industry average. Industry average Medical Products current ratio 20X5 A. Current Ratio = Current Assets = $486,000 = 1.98 1.63 Current Liabilities $245,000 Medical Products Stockholders ratio 20X5 B. = Total SH Equity = 271000 = 0.43 0.354 Total assets 630000 The medical products is higher so the average is better, you have more assets over liabilites and more stockholders equity over assets. Industry Average Industry Average Rate of return on Stockholders equity ratio...
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ACCT212_Project 2_NicholeD - = 305000 = 31.87% 44.10% Net...

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