The condensed balance sheet and income statement for Marjoram Company are presented below. MARJORAM COMPANY Balance Sheet December 31, 2024 Cash $ 19,000 Notes receivable (due August 15, 2025) 35,000 Accounts receivable (net) 48,400 Inventory 70,600 Property, plant, and equipment (net) 250,000 Intangible assets 12,400 Total assets $ 435,400 Current liabilities $ 108,400 Bonds payable (11%) (long-term) 100,000 Common stock 70,000 Retained earnings 157,000 Total liabilities and equity $ 435,400 MARJORAM COMPANY Income Statement For the Year ended December 31, 2024 Sales $ 704,000 Cost of goods sold 422,400 Gross profit $ 281,600 Operating expenses 166,200 Operating income $ 115,400 Interest expense 11,000 Income before income tax $ 104,400 Income tax expense 31,320 Net income $ 73,080
The condensed balance sheet and income statement for Marjoram Company are presented below. MARJORAM COMPANY Balance Sheet December 31, 2024 Cash $ 19,000 Notes receivable (due August 15, 2025) 35,000 Accounts receivable (net) 48,400 Inventory 70,600 Property, plant, and equipment (net) 250,000 Intangible assets 12,400 Total assets $ 435,400 Current liabilities $ 108,400 Bonds payable (11%) (long-term) 100,000 Common stock 70,000 Retained earnings 157,000 Total liabilities and equity $ 435,400 MARJORAM COMPANY Income Statement For the Year ended December 31, 2024 Sales $ 704,000 Cost of goods sold 422,400 Gross profit $ 281,600 Operating expenses 166,200 Operating income $ 115,400 Interest expense 11,000 Income before income tax $ 104,400 Income tax expense 31,320 Net income $ 73,080
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 6MCQ
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Question
The condensed balance sheet and income statement for Marjoram Company are presented below.
| MARJORAM COMPANY | |
| Balance Sheet | |
| December 31, 2024 | |
| Cash | $ 19,000 |
|---|---|
| Notes receivable (due August 15, 2025) | 35,000 |
| Accounts receivable (net) | 48,400 |
| Inventory | 70,600 |
| Property, plant, and equipment (net) | 250,000 |
| Intangible assets | 12,400 |
| Total assets | $ 435,400 |
| Current liabilities | $ 108,400 |
| Bonds payable (11%) (long-term) | 100,000 |
| Common stock | 70,000 |
| 157,000 | |
| Total liabilities and equity | $ 435,400 |
| MARJORAM COMPANY | |
| Income Statement | |
| For the Year ended December 31, 2024 | |
| Sales | $ 704,000 |
|---|---|
| Cost of goods sold | 422,400 |
| Gross profit | $ 281,600 |
| Operating expenses | 166,200 |
| Operating income | $ 115,400 |
| Interest expense | 11,000 |
| Income before income tax | $ 104,400 |
| Income tax expense | 31,320 |
| Net income | $ 73,080 |
Required:
Compute the
Note: Round your answer to 2 decimal places.
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