shown below Income Statement data for Grendel Images Company for the years

Shown below income statement data for grendel images

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shown below:Income Statement data for Grendel Images Company for the years ended December 31,2010 and 2009 are as follows:
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ICA 4-3ABC Industries IncComparative Income StatementFor the Years Ended December 31, 2010 and 200920102009Sales$5,125,000$3,257,600Sales returns and allowances$125,000$57,600Net Sales$5,000,000 $3,200,000Cost of Goods Sold$3,400,000$2,080,000Gross Profit$1,600,000$1,120,000Selling Expenses$650,000$464,000Administrative Expenses$325,000$224,000Total Operating Expenses$975,000$688,000Income From Operations$625,000$432,000Other Income$25,000$19,200$650,000$451,200Other Expenses (interest)$105,000$64,000Income Before Income Tax$545,000$387,200Income Tax Expense$300,000$176,000Net Income$245,000$211,200ABC Industries IncComparative Retained Earnings StatementFor the Years Ended December 31, 2010 and 200920102009Retained Earnings, Januray 1$723,000 $581,800 Add Net Income for year$245,000$211,200Total $968,000 $793,000 Deduct dividends:Preferred Stock$40,000 $40,000 Common Stock$45,000 $30,000 Total$85,000 $70,000 Retained Earnings, December 31$883,000 $723,000 ABC Industries IncComparative Balance StatementDecember 31, 2010 and 200912-31-201012-31-2009AssetsCurrent AssetsCash$175,000$125,000Temporary Investments$150,000$50,000Accounts Receivable (Net)$425,000 $325,000Inventories$720,000$480,000Prepaid Expenses$30,000$20,000Total Current Assets$1,500,000$1,000,000Long-Term Investments$250,000$225,000Property, Plant and Equipment (Net)$2,093,000$1,948,000Total Assets$3,843,000$3,173,000LiabilitiesCurrent Liabilities$750,000$650,000Long-Term LiabilitiesMortgage Note Payable 10% (due 2013)$410,000$0Bonds Payable, 8% (due 2016)$800,000$800,000Total Long Term Liabilities$1,210,000$800,000Total Liabilities$1,960,000$1,450,000Stockholders' EquityPreferred 8% stock, $ 100 Par$500,000$500,000Common Stock, $ 10 Par$500,000$500,000$50,000Retained Earnings$883,000$723,000Total Stockholders' Equity$1,883,000$1,723,000Total Liabilities and Stockholders' Equity$3,843,000$3,173,000see page 332 and 333 for summary Ratios Industry Norm 1. Working Capital $750,000.00 N/A 2. Current Ratio 2.0 2.2 3. Quick Ratio 1.0 0.8 (all but inventory)= quick assets 4. Accounts Receivable Turnover 13.3 16.0 5. Number of days sales in receivables 27.4 41.4 days to get days divide by 365 6. Inventory Turnover 5.7 5.0 7. Number of days sales in inventory 64.4 75.0 8. Ratio of fixed assets to long-term liabilites 1.7 2.0 property plant and equip to=divide 9. Ratio of liabilities to stockkholders equity 1.0 0.7 10. Number of times interest charges are earned skip 8.5 11. Number of times preferred dividends earned skip 7.1 12. Ratio of net sales to assets 1.4 2.1 13. Rate earned on total assets 10.0% 8.5%
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