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Exam 2 Ratio Analysis Example -...

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5cdf5b282cc86b45daef1c9eca527bd83d529597.xlsxIncome Statement1of6Garrett CompanyStatement of OperationsDecember 31, 2012 and 2011(dollars in thousands)20122011Sales$3,100$3,200Cost of goods sold19251950Gross margin$1,175$1,250Operating expenses525625Net operating income$650$625Interest expense2139Net income before taxes$629$586Income taxes (30%)189176Net income$440$410Additional Information:Market Price Per Share at 12/31/2012 was $24.00.Cash Paid for Interest in 2012 was $19,000.There are no preferred dividends in 2012.Cash Paid for Dividends in 2012 was $300,000.
5cdf5b282cc86b45daef1c9eca527bd83d529597.xlsx Balance Sheet2of6Garrett CompanyStatement of Financial PositionDecember 31, 2012 and 2011(dollars in thousands)20122011Current assets:Cash$140$110Marketable securities4040190180Inventory120110Total current assets490440Noncurrent assets:1,3601,350Total assets$1,850$1,790Current liabilities:Accounts payable$100$140Accrued liabilities (accrued expenses)2040Total current liabilities120180Noncurrent liabilities:Bonds payable380400Total liabilities500580Stockholders’ equity:Common stock600600Paid in capital in excess of par300300Retained earnings450310Total stockholders’ equity1,3501,210Total liabilities & stockholders’ equity$1,850$1,790Accounts receivable, net of allowance of $20(2012) and $14 (2011)Plant & equipment, net of acc. dep. of $50(2012) and $30 (2011)
5cdf5b282cc86b45daef1c9eca527bd83d529597.xlsxStatement of SHE3of6Garrett CompanyStatement of Shareholders' EquityDecember 31, 2012 and 2011(dollars and shares in thousands)Balance, January 1, 201027.5550200150Stock Issued2.550100Net Income350Dividends Paid(300)Balance, December 31, 201030600300200Net Income410Dividends Paid(300)Balance, December 31, 201130600300310Net Income440Dividends Paid(300)Balance, December 31, 201230600300450# of SharesOutstandingCommonstockAdditionalPaid inCapitalRetainedEarnings

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Term
Spring
Professor
Brown
Tags
Accounting, Income Statement, Generally Accepted Accounting Principles

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