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Ch 13 Ratios US Edition at Aug 29 18 22 Frederick Cruz.xlsx

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Before you begin, print out all the pages in this workbook.The financial statements of Dandy Distributors Ltd.are shown on the "Fcl. Stmts." page.Required:12From these ratios, analyze the financial performance of Dandy.Based on Dandy's financial statements, calculate ratios for the year ended December 31,2020. Assume all sales are on credit. Show your work.
Dandy Distributors Ltd.Income StatementFor the Year Ended December 31, 202020202019Sales, net$15,929,000$17,362,61011,946,75013,021,958Gross profit3,982,2504,340,653Operating expensesSellingSalaries and benefits850,000782,000Delivery119,900119,900Office supplies106,900110,107Warranty477,870487,427Total selling1,554,6701,499,434General and administrativeBad debts318,580286,722Depreciation1,570,3501,586,054Professional fees144,400150,176Total general and adminstrative2,033,3302,022,952Total operating expenses3,588,0003,522,386Income (loss) from operations394,250818,267Other income (expenses)Rent revenue132,900146,190Income (loss) before interest and income taxes527,150964,457Interest expense598,010574,090Income (loss) before income taxes(70,860)390,367Income taxes (recovered)(17,006)93,688Net income (loss)($53,854)$296,679Dandy Distributors Ltd.Statement of Changes in EquityFor the Year Ended December 31, 202020202019Total equityTotal equityCommon stockBalance (deficit) at Jan. 1$669,000$9,032,964$9,701,964$9,332,790Stock issued38,20038,200Net income (loss)(53,854)(53,854)296,679Cash dividends declaredPreferred30,90030,90030,591Common38,80038,80041,904Less:Cost of goods soldRetainedearnings (deficit)
Balance (deficit) at Dec. 31$707,200$9,048,810$9,756,010$9,701,964
Dandy Distributors Ltd.Balance SheetAt December 31, 2020AssetsCurrent20202019Cash$85,000$40,420Accounts receivable, net2,920,0003,182,800Inventories2,560,0002,764,8005,565,0005,988,020Plant assetsLand8,821,0008,566,811Building, net8,265,0009,008,850Patents, net33,10033,100Goodwill30,40030,40017,149,50017,639,161$22,714,500$23,627,181LiabilitiesCurrentTrade accounts payable$667,000$687,010Estimated current liabilities108,200113,610Estimated warranty liabilities152,000155,040Note payable14,900Dividends payable(69,700)(72,495)Interest payable11,90011,900Salaries and benefits payable70,30072,409Sales tax payable11,90012,019Unearned rent16,20012,183Current portion of mortgage payable1,303,6623,113,001Corporate income taxes payable15,59016,5252,301,9524,121,202Non-currentMortgage payable11,960,20012,917,016(1,303,662)

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Term
Spring
Professor
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Tags
Balance Sheet, Financial Ratio, Generally Accepted Accounting Principles, dandy, Dandy Distributors Ltd

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