The following income statement and balance sheets for Laser World are provided: $$\begin{array} { | l r | }
\hline { \begin{array} { c }
\text { Laser World } \
\text { Income Statement }
\end{array} } \
{ \text { For the year-ended December 31, 2012 } } \
\hline & \
\text { Sales revenue } & \$ 2,200,000 \
\text { Cost of goods sold } & 1,500,000 \
\text { Gross profit } & 700,000 \
\text { Expenses: } & \
\quad \text { Operating expenses } & 350,000\
\quad \text { Depreciation expense } & 70,000 \
\quad \text { Loss on sale of land } & 5,000 \
\quad \text { Interest expense } & 25,000 \
\quad \text { Income tax expense } &60,000 \
\quad \text { Total expenses } & 510,000 \
\hline \text { Net income } & \$ 190,000\
\hline
\end{array}$$ Assuming that all sales were on account, calculate the following risk ratios for 2012:

Question

The following income statement and balance sheets for Laser World are provided: $$\begin{array} { | l r | } 
\hline { \begin{array} { c } 
\text { Laser World } \
\text { Income Statement }
\end{array} } \
 { \text { For the year-ended December 31, 2012 } } \
\hline & \
\text { Sales revenue } & \$ 2,200,000 \
\text { Cost of goods sold } & 1,500,000 \
\text { Gross profit } & 700,000 \
\text { Expenses: } &  \
\quad \text { Operating expenses } & 350,000\
\quad \text { Depreciation expense } &  70,000 \
\quad \text { Loss on sale of land } & 5,000 \
\quad \text { Interest expense } & 25,000 \
\quad \text { Income tax expense } &60,000 \
\quad \text { Total expenses } & 510,000  \
\hline \text { Net income } & \$ 190,000\
\hline
\end{array}$$  Assuming that all sales were on account, calculate the following risk ratios for 2012:

Quizplus · Accepted Answer

The Answer of The following income statement and balance sheets for Laser World are provided: $$\begin{array} { | l r | } 
\hline { \begin{array} { c } 
\text { Laser World } \
\text { Income Statement }
\end{array} } \
 { \text { For the year-ended December 31, 2012 } } \
\hline & \
\text { Sales revenue } & \$ 2,200,000 \
\text { Cost of goods sold } & 1,500,000 \
\text { Gross profit } & 700,000 \
\text { Expenses: } &  \
\quad \text { Operating expenses } & 350,000\
\quad \text { Depreciation expense } &  70,000 \
\quad \text { Loss on sale of land } & 5,000 \
\quad \text { Interest expense } & 25,000 \
\quad \text { Income tax expense } &60,000 \
\quad \text { Total expenses } & 510,000  \
\hline \text { Net income } & \$ 190,000\
\hline
\end{array}$$  Assuming that all sales were on account, calculate the following risk ratios for 2012:

The Following Income Statement and Balance Sheets for Laser World