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Figure 16-2 *Includes $30,000 of Interest Expense and $18,000 of Income Tax

Question 113

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Figure 16-2.Financial statements for Grange Company appear below:
$Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -The income statement for Ray Company for the year ended December 31, 2013, appears below. \begin{array}{lr} \text { Sales } & \$ 610,000 \\ \text { Cost of goods sold } & 380,000\\ \text {Gross margin }&230,000 \\ \text {Expenses }&170,000\\ \text {Expenses }&\$60,000 \end{array} *Includes $30,000 of interest expense and $18,000 of income tax expense. Additional information: Required: Compute the following ratios for 2013:$ $Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -The income statement for Ray Company for the year ended December 31, 2013, appears below. \begin{array}{lr} \text { Sales } & \$ 610,000 \\ \text { Cost of goods sold } & 380,000\\ \text {Gross margin }&230,000 \\ \text {Expenses }&170,000\\ \text {Expenses }&\$60,000 \end{array} *Includes $30,000 of interest expense and $18,000 of income tax expense. Additional information: Required: Compute the following ratios for 2013:$ Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-The income statement for Ray Company for the year ended December 31, 2013, appears below.
$\begin{array}{lr}\text { Sales } & \$ 610,000 \\\text { Cost of goods sold } & 380,000\\\text {Gross margin }&230,000 \\\text {Expenses }&170,000\\\text {Expenses }&\$60,000\end{array}$ *Includes $30,000 of interest expense and $18,000 of income tax expense.
Additional information:
$Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -The income statement for Ray Company for the year ended December 31, 2013, appears below. \begin{array}{lr} \text { Sales } & \$ 610,000 \\ \text { Cost of goods sold } & 380,000\\ \text {Gross margin }&230,000 \\ \text {Expenses }&170,000\\ \text {Expenses }&\$60,000 \end{array} *Includes $30,000 of interest expense and $18,000 of income tax expense. Additional information: Required: Compute the following ratios for 2013:$ Required: Compute the following ratios for 2013:
$Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -The income statement for Ray Company for the year ended December 31, 2013, appears below. \begin{array}{lr} \text { Sales } & \$ 610,000 \\ \text { Cost of goods sold } & 380,000\\ \text {Gross margin }&230,000 \\ \text {Expenses }&170,000\\ \text {Expenses }&\$60,000 \end{array} *Includes $30,000 of interest expense and $18,000 of income tax expense. Additional information: Required: Compute the following ratios for 2013:$

Figure 16-2 *Includes $30,000 of Interest Expense and $18,000 of Income Tax

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