BUS 5110 Written Assignment 7 Financials

Income Statements Balance Sheets

Fashion Forward Dream Designs Fashion Forward Fashion Forward Dream Designs Dream Designs
12/31/2018 12/31/2018 12/31/2018 12/31/2017 12/31/2018 12/31/2017
Revenue Current Assets
Credit Sales 2,000,000 4,320,000 Cash and Cash Equivalents 950,000 980,000 1,710,000 1,705,000
Non-Credit Sales 500,000 1,080,000 Accounts Receivable 200,000 150,000 250,000 275,000
Total Revenue 2,500,000 5,400,000 Inventory 112,000 105,000 200,000 215,000
Other Current Assets 35,000 50,000 120,500 100,000
Cost of Sales 1,400,000 3,250,000 Total Current Assets 1,297,000 1,285,000 2,280,500 2,295,000
Gross Profit 1,100,000 2,150,000 Property, Plant and Equipment 635,000 700,000 850,000 900,000
Goodwill 750,000 750,000 1,150,000 1,150,000
Operating Expenses Other Long-Term Assets 65,000 70,000 100,750 105,000
Research and Development 50,000 200,000 Total Assets 2,747,000 2,805,000 4,381,250 4,450,000
Selling, General, and Administrative 750,000 1,600,000
Total Operating Expenses 800,000 1,800,000 Current Liabilities
Accounts Payable 545,000 535,000 845,750 875,000
Earnings Before Interest and Taxes 300,000 350,000 Short-Term Debt 25,000 - 50,000 60,000
Other Current Liabilities 600,000 510,000 730,000 740,000
Interest Expense (18,000) (50,000) Total Current Liabilities 1,170,000 1,045,000 1,625,750 1,675,000
Income Before Tax 282,000 300,000 Long-Term Debt 75,000 - 120,500 130,000
Income Tax Expense (145,500) (87,500) Other Long-Term Liabilities 100,000 75,000 155,000 165,000
Net Income 136,500 212,500 Total Liabilities 1,345,000 1,120,000 1,901,250 1,970,000

Profit Margin Ratio 5.46% 3.94% Stockholders Equity

Return on Assets 4.92% 4.81% Common Stock 500,000 775,000 749,500 942,750
Current ratio 111% 140% Preferred Stock 150,000 294,500 390,000 409,250
Quick ratio 98% 121% Retained Earnings 752,000 615,500 1,340,500 1,128,000
Receivables turnover ratio 11.43 16.46 Total Stockholders Equity 1,402,000 1,685,000 2,480,000 2,480,000
average collection period 31.94 22.18
Inventory turnover ratio 12.90 15.66 Total Liabilities and Stockholders Equity 2,747,000 2,805,000 4,381,250 4,450,000
Average sale period 28 23 - - - -
Debt to Equity Ratio 96% 77%

3.72