In: Economics
12/31/2021 12/31/2022 12/31/2023
Sales $177,600 $182,600
$205,100
Cost of goods sold 98,000 104,500
118,300
Gross margin $79,600 $78,100
$86,800
General and administrative expenses 18,500 20,300
21,200
Operating income $61,100 $57,800
$65,600
Interest expense 2,100 2,400 2,600
Income before taxes $59,000 $55,400
$63,000
Tax expense 9,400 9,600 11,000
Net income $49,600 $45,800 $52,000
What is the working ratio for south Paw veterinary supply on 12/31/2021?
A.8,200 B.3,800 C.1,800 D.56,100
What is the current ratio for South Paw Veterinary Supply on 12/31/2023?
A.13.63 B.0.69 C.1.91 D.0.88
What is the debt ratio for South Paw Veterinary Supply on 12/31/2021?
A.31.19% B.31.43 % C.4.21% D.23.78%
What is the times interest earned ratio for South Paw Veterinary Supply on 12/31/2022?
A.19.08 B.24.08 C.0.05 D.23.08
What is the gross margin percentage for south Paw veterinary Supply on 12/31/2023?
A.31.98% B.25.35% C.42.32% D.22.92%
What is the return on sales for South Paw Veterinary Supply on 12/31/2023?
A.31.98 B.22.92 C.42.32% D.25.35%
What is the working ration for south Paw veterinary supply on 12/31/2021?
A.8,200 B.3,800 C.1,800 D.56,100
What is the current ratio for South Paw Veterinary Supply on 12/31/2023?
A.13.63 B.0.69 C.1.91 D.0.88
What is the debt ration for South Paw Veterinary Supply on 12/31/2021?
A.31.19% B.31.43 % C.4.21% D.23.78%
The above 3 questions can only be answered from the balance sheet of the company which is not given here.
The rest of the questions can be answered from the P&L statement given here.
What is the times interest earned ratio for South Paw Veterinary Supply on 12/31/2022?
TIMES interest Earned ratio = (Interest Expense + Tax Expense + Net Income) / Interest Expense
= (2400 + 9600 + 45800) / 2400 = 57800 / 2400 = 24.08 (OPTION B)
What is the gross margin percentage for south Paw veterinary Supply on 12/31/2023?
Gross Margin Percentage = Gross Margin / Total Revenue * 100 % = 86800 / 205100 * 100 % = 42.32% (OPTION C)
What is the return on sales for South Paw Veterinary Supply on 12/31/2023?
Return on Sales = Operating Income / Net Sales = 65600 / 205100 * 100% = 31.98% (OPTION A)
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