Carla Vista Medical Manufactures Assignment
Exercise D12-10 Carla Vista Medical manufactures hospital beds and other institutional furniture. The company's comparative balance she Carla Vista Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash $300,000 $417,500 Accounts receivable, net 1,065,200 776,400 Inventory 726,000 681,000 Other current assets 374,000 247,000 Total current assets 2,465,200 2,121,900 Property, plant, & equipment, net 8,852,4408 ,430, 430
Total assets $11,317,640 $10,552,330 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $3,118,000 3,702,600 6,820,600 58,600 140,000 4,298,440 4,497,040 $11,317,640 $2,846,100 3,892,650 6,738,750 58,600 103,850 3,651,130 3,813,580 $10,552,330 Comparative Income Statement and statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,420,000 $9,613,950 Cost of goods sold 5,637,000 5,298,750 Gross profit 4,783,000 4,315,200 Operating expenses 2,840,200 2,634,100 Net operating income 1,942,800 1,681,100 Interest expense 393,000 308,700 Net income before taxes 1,549,800 1,372,400 Income taxes (30%) 464,940 411,720 Net income $1,084,860 $960,680 Dividends paid Preferred dividends 29,550 29,550 Common dividends 408,000 416,000 Total dividends paid 437,550 445,550 Net income retained 647,310 515,130 Retained earnings, beginning of year 3,651,130 3,136,000 Retained earnings, end of year $4,298,440 $3,651,130 Calculate the following profitability ratios for 2016. (Round answers to 1 decimal a. Gross margin percentage b. Return on assets C. Return on common stockholders' equity.
