Financial Statements and Ratios - Happy Hamburger

Happy Hamburger Company

Income Statement for the year ending December 31, 20XX

Sales

         1,607,500

Cost of goods sold

         1,392,500

Selling, general and administrative expenses

             145,000

   Earnings before interest and taxes (EBIT)

               70,000

Interest expense

               24,500

   Earnings before taxes (EBT)

               45,500

Federal and state income taxes (40%)

               18,200

Net Income

               27,300

Happy Hamburger Company

Balance Sheet as of December 31, 20XX

Assets

Liabilities and Shareholder Equity

Cash

           80,500

Accounts payable

         132,000

Accounts Receivable

         334,500

Current portion of debt

           84,000

Inventories

         240,000

Other current liabilities

         114,000

     Total current assets

         655,000

Total current liabilities

         330,000

Net fixed assets

         292,500

Long-term debt

         256,500

Total assets

         947,500

Total Liabilities

         586,500

Common equity

         361,000

Total Liabilities & Equity

         947,500

 Happy

Industry

 Hamburger

Average

Current ratio

2.2

Days sales outstanding (based on 365 day year)

36 days

Inventory turnover

6.7

Fixed asset turnover

12.1

Total asset turnover

3.00

Return on sales

1.20%

Return on assets

3.60%

Return on equity

9.00%

Debt ratio

55%