Question

In: Economics

12/31/2021 12/31/2022 12/31/2023 Sales $177,600 $182,600 $205,100 Cost of goods sold...

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%

Expert Solution

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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Rahul Sunny answered 7 months ago

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