| Below are the condensed comparative Income Statements and Balance Sheets for Zigoscar | |||||||
| Corporation for 2014 and 2013. | |||||||
| Zigoscar Corporation | |||||||
| Comparative Income Statements | |||||||
| For the years ended December 31, 2014 and 2013 | |||||||
| 2014 | 2013 | ||||||
| Net Sales | $ 6,553,600 | $ 6,292,800 | |||||
| Cost of goods sold | 4,177,600 | 4,016,800 | |||||
| Gross Margin | 2,376,000 | 2,276,000 | |||||
| Operating expenses: | |||||||
| Selling Expenses | 953,600 | 1,036,000 | |||||
| Administrative expenses | 894,400 | 846,400 | |||||
| Total Expenses | 1,848,000 | 1,882,400 | |||||
| Income from operations | 528,000 | 696,900 | |||||
| Interest Expense | 131,200 | 78,400 | |||||
| Income before taxes | 396,800 | $ 315,200.00 | |||||
| Income tax expense | 124,800 | 113,600 | |||||
| Net Income | $ 272,000 | $ 21,600 | |||||
| Earnings per share | $ 3.40 | $ 2.52 | |||||
| Zigoscar Corporation | |||||||
| Comparative Balance Sheets | |||||||
| December 31, 2014 and 2013 | |||||||
| 2014 | 2013 | ||||||
| Assets | |||||||
| Cash | $ 162,400 | $ 81,600 | |||||
| Accounts receivable (net) | 471,200 | 458,400 | |||||
| Inventory | 1,149,600 | 1,189,600 | |||||
| Property, Plant & Equip (net) | 1,500,000 | 1,440,000 | |||||
| Total Assets | $ 3,283,200 | $ 3,169,600 | |||||
| Liabilities and Stockholders Equity | |||||||
| Accounts payable | $ 535,200.00 | $ 954,400.00 | |||||
| Notes payable (short term) | 400,000 | 800,000 | |||||
| Bonds payable | 800,000 | – | |||||
| Common stock, $10 par value | 800,000 | 800,000 | |||||
| Retained earnings | 748,000 | 615,200 | |||||
| Total Liab. & Stockholders Equity | $ 3,283,200 | $ 3,169,600 | |||||
| The depreciation expense in 2014 was 5,000. From this information, please complete the following: | |||||||
| 1. Create a Statement of Cash Flows of Operations for the year 2014 | |||||||
| 2. Conduct a Horizontal analysis of the above income statement and balance sheet showing | |||||||
| the amount and percentage chages from 2013 to 2014 (Round to one decimal place). | |||||||
| 3. Perform the following ratio analysis for 2014. | |||||||
| 1. Current Ratio | |||||||
| 2. Quick Ratio | |||||||
| 3. Receivables Turnover | |||||||
| 4. Inventory Turnover | |||||||
| 5. Profit margin | |||||||
| 6. Return on assets | |||||||
| 7. Debt to Equity ratio | |||||||
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