Select Page
  

The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement: Sales revenue$190,000*$167,000 Cost of goods sold 112,000 100,000 Gross profit 78,000 67,000 Operating expenses and interest expense 56,000 53,000 Pretax income 22,000 14,000 Income tax 8,000 4,000 Net income$14,000 $10,000 Balance sheet: Cash$4,000 $7,000 Accounts receivable (net) 14,000 18,000 Inventory 40,000 34,000 Operational assets (net) 45,000 38,000 $103,000 $97,000 Current liabilities (no interest)$16,000 $17,000 Long-term liabilities (10% interest) 45,000 45,000 Common stock (par $5) 30,000 30,000 Retained earnings 12,000 5,000 $103,000 $97,000 *One-third was credit sales. 2.Award: 37.50 out of 50.00 points2.Respond to the following for 2015: (Round your answers to 1 decimal place.) g.What was the return on assets?h.Compute the financial leverage percentage?