a) SPINX INC EarningsFor the Year Ended December 31, Current Year
Cr Net sales$4,395,253
Cr Less: Cost of goods sold(2,821,455)
Cr Gross profit 1,573,798
Cr Less: Operating expenses (1,004,396)
Cr Operating income $569,402
Dr Non-operating items: Interest revenue$15,797
Dr Income tax expense (204,820)
Cr (189,023)
Cr Net earnings $380,379
Cr Earnings per share$1.70
b-1.
Gross profit $1,573,798
Net sales $4,395,253
Gross profit rate ($1,573,798 ÷ $4,395,253) =35.8%
b-2.
Net income$ 3,80,379
Net sales $4,395,253
Net income as a percentage of net sales($380,379 ÷ $4,395,253) =8.7%
b-3.
Operating income$ 5,69,402
Average total assets$2,575,000
Return on assets ($569,402 ÷ $2,575,000)=22.1%
b-4.
Net income$380,379
Average equity$1,917,000
Return on equity ($380,379 ÷ $1,917,000) =19.8%
