The following condensed information is reported by Sporting Collectibles. 2021 2020 Income Statement Information Sales revenue $ 7,224,000 $ 7,600,000 Cost of goods sold 4,782,288 5,100,000 Net income 316,480 168,000 Balance Sheet Information Current assets $ 1,520,000 $ 1,420,000 Long-term assets 2,120,000 1,820,000 Total assets $ 3,640,000 $ 3,240,000 Current liabilities $ 1,120,000 $ 820,000 Long-term liabilities 1,580,000 1,580,000 Common stock 720,000 720,000 Retained earnings 220,000 120,000 Total liabilities and stockholders' equity $ 3,640,000 $ 3,240,000
The following condensed information is reported by Sporting Collectibles. 2021 2020 Income Statement Information Sales revenue $ 7,224,000 $ 7,600,000 Cost of goods sold 4,782,288 5,100,000 Net income 316,480 168,000 Balance Sheet Information Current assets $ 1,520,000 $ 1,420,000 Long-term assets 2,120,000 1,820,000 Total assets $ 3,640,000 $ 3,240,000 Current liabilities $ 1,120,000 $ 820,000 Long-term liabilities 1,580,000 1,580,000 Common stock 720,000 720,000 Retained earnings 220,000 120,000 Total liabilities and stockholders' equity $ 3,640,000 $ 3,240,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following condensed information is reported by Sporting Collectibles.
| 2021 | 2020 | |||||||
| Income Statement Information | ||||||||
| Sales revenue | $ | 7,224,000 | $ | 7,600,000 | ||||
| Cost of goods sold | 4,782,288 | 5,100,000 | ||||||
| Net income | 316,480 | 168,000 | ||||||
| Balance Sheet Information | ||||||||
| Current assets | $ | 1,520,000 | $ | 1,420,000 | ||||
| Long-term assets | 2,120,000 | 1,820,000 | ||||||
| Total assets | $ | 3,640,000 | $ | 3,240,000 | ||||
| Current liabilities | $ | 1,120,000 | $ | 820,000 | ||||
| Long-term liabilities | 1,580,000 | 1,580,000 | ||||||
| Common stock | 720,000 | 720,000 | ||||||
| Retained earnings | 220,000 | 120,000 | ||||||
| Total liabilities and |
$ | 3,640,000 | $ | 3,240,000 | ||||
Required:
1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)
2. Determine the amount of dividends paid to shareholders in 2021.
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