For Neel

Problem 1

Problem 1

to

.

2013

2012 % Sales

Sales

$ 600,000

$ 600,000 $ 450,000

Required: Express each income statement component as a percentage of sales, and comment on the trends in each line from Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper		2012		2013
	(25 points)
	%		Sales	Comments
$ 1,000,000	$ 1,200,000
	Cost of goods sold		$ 450,000			$ 600,000
Gross margin	$ 550,000
	Operating expenses
Net income	$ (50,000)	$ 150,000

Problem 2

Problem 2

(25 points)

2013 2012

$ 360,000.00

Sales

Cost of goods sold

Operating expenses

Required: Compute (1) accounts receivable turnover for 2013, (2) the inventory turnover for 2013, and (3) the net margin for 2012.
Balance sheet items
Accounts receivable	$ 380,000.00	$ 376,000.00
Allowance for doubtful accounts	$ (20,000.00)	$ (16,000.00)
Net accounts receivable		$ 360,000.00
Inventory	$ 480,000.00	$ 440,000.00
Income statement items
$ 3,400,000.00	$ 3,080,000.00
$ 1,600,000.00	$ 1,440,000.00
$ 780,000.00	$ 680,000.00