Compute component percentages for year to find the net income component percentage, the company divides net income by total sales so that $15,000 / $50,000 = 0.30. The company must then change the decimal into a fraction by multiplying it by 100. So, 100 x 0.30 = 30. The net income component percentage is 30 percent.
Prince Company
Income Statement
Year Year1
Sales Revenue 190000 167000
Cost of goods sold 1112000 100000
Gross Profit "72000 67000
Operating expenses and interest expense __56000__ 53000,
Pretax Income 2200014000
Income Tax 3000 4000
Net Income 14000 10000
Balance sheet Year? Year
cash 4000 7000
Accounts Receive 114000 18000
Property & Equipment 45000 _ 36000
Total Assets 302000 97000
Current Liabilities ‘i6000 4.7000
Long term Liabilities 5000 45000
Common stock 30000 30000
Retained Earnings 1120005000
Total Liabilities & Stock holders equity ___ 10300037000,
L. Current Ratio = Current Assets / Current Liabilities
Year? Year
Current Ratio 36347
Current Assets - Inventory / Current liabilities
Year? Year
Quick Ratio un 147
2.Profit Margin = Net profit /Sales
Year? Year
Profit Margin 737% 5.99%
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