the haines corp shows the following financial data for 2012 and 2013 2012 2013 sales 678537
Aug 30, 2021 | Uncategorized
The Haines Corp. shows the following financial data for 2012 and 2013.
|
2012 |
|
2013 |
| Sales |
$ |
3,160,000 |
|
$ |
3,860,000 |
| Cost of goods sold |
|
2,360,000 |
|
|
2,570,000 |
|
|
|
|
|
|
| Gross profit |
$ |
800,000 |
|
$ |
1,290,000 |
| Selling & administrative expense |
|
287,000 |
|
|
223,000 |
|
|
|
|
|
|
| Operating profit |
$ |
513,000 |
|
$ |
1,067,000 |
| Interest expense |
|
41,200 |
|
|
52,900 |
|
|
|
|
|
|
| Income before taxes |
$ |
471,800 |
|
$ |
1,014,100 |
| Taxes (35%) |
|
165,130 |
|
|
354,935 |
|
|
|
|
|
|
| Income after taxes |
$ |
306,670 |
|
$ |
659,165 |
|
|
|
|
|
|
|
|
For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 2013. (Input your answers as a percent rounded to 2 decimal places.)
|
|
|
2012 |
2013 |
Profitability |
| a. |
Cost of goods sold to sales |
% |
% |
|
| b. |
Selling and administrative expense to sales |
% |
% |
|
| c. |
Interest expense to sales |
% |
% |
|
