(Financial statement analysis) The annual
sales for Salco, Inc. were $4.58 million last year.
Current assets
$505,000
Liabilities
$1,009000
Net fixed assets
1,513,000
Owners' equity
$1,009,000
Total Assets
$2,018,000
Total
$2,018,000
Salco's income statement for the year was as
follows
Sales
$4,580,000
Less: Cost of goods sold
(3,507,000)
Gross profit
$1,073,000
Less: Operating expenses
(492,000)
Net operating income
$581,000
Less: Interest expense
(109,000)
Earnings before taxes
$472,000
Less: Taxes
(35 %35%)
(165,200)
Net income
$306,800
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