Figure 16-2.Financial statements for Grange Company appear below:
Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-The income statement for Ray Company for the year ended December 31, 2013, appears below.
$\begin{array}{lr}
\text { Sales } & \$ 610,000 \
\text { Cost of goods sold } & 380,000\
\text {Gross margin }&230,000 \
\text {Expenses }&170,000\
\text {Expenses }&\$60,000
\end{array}$ *Includes $30,000 of interest expense and $18,000 of income tax expense.
Additional information:
Required: Compute the following ratios for 2013:

Question

Figure 16-2.Financial statements for Grange Company appear below:
   Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-The income statement for Ray Company for the year ended December 31, 2013, appears below.
 $\begin{array}{lr}
\text { Sales } & \$ 610,000 \
\text { Cost of goods sold } & 380,000\
\text {Gross margin }&230,000 \
\text {Expenses }&170,000\
\text {Expenses }&\$60,000
\end{array}$ *Includes $30,000 of interest expense and $18,000 of income tax expense.
Additional information:
  Required: Compute the following ratios for 2013:

Quizplus · Accepted Answer

The Answer of Figure 16-2.Financial statements for Grange Company appear below:
   Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-The income statement for Ray Company for the year ended December 31, 2013, appears below.
 $\begin{array}{lr}
\text { Sales } & \$ 610,000 \
\text { Cost of goods sold } & 380,000\
\text {Gross margin }&230,000 \
\text {Expenses }&170,000\
\text {Expenses }&\$60,000
\end{array}$ *Includes $30,000 of interest expense and $18,000 of income tax expense.
Additional information:
  Required: Compute the following ratios for 2013:

Figure 16-2 *Includes $30,000 of Interest Expense and $18,000 of Income Tax