Pharoah Medical
Comparative Balance Sheet
As of December 31
2020
2019
Assets
Current assets
Cash $386,000 $417,400
Accounts receivable, net $1,057,000 $776,400
Inventory $750,000 $681,050
Other current assets $381,350 $247,050
Total current assets $2,574,350 $2,121,900
Property, plant & equipment, net $8,641,555 $8,440,160
Total assets $11,215,905 $10,562,060
Liabilities and Stockholders' Equity
Current liabilities $3,155,000 $2,846,100
Long-term debt $3,702,700 $3,892,650
Total liabilities $6,857,700 $6,738,750
Preferred stock, $5 par value $59,000 $60,000
Common stock, $0.25 par value $104,650 $103,900
Retained earnings $4,194,555 $3,660,410
Total stockholders' equity $4,358,205 $3,823,310
Total liabilities and stockholders' equity $11,215,905 $10,562,060
For the
2020 $10,177,300
2019 $9,613,900
Sales revenue (all on account)
$5,612,400 $5,298,800
Cost of goods sold
$4,564,900 $4,315,100
Gross profit
$1,047,500 $983,700
Operating expenses
$2,840,200 $2,634,150
Net operating income
$1,724,700 $1,680,950
Interest expense
$300,350 $308,650
Net income before taxes
$1,424,350 $1,372,300
Income taxes (30%)
$427,305 $411,690
Net income
$997,045 $960,610
Dividends paid
$29,450 $29,450
Preferred dividends
$433,400 $413,050
Common dividends
$462,850 $442,500
Total dividends paid
$534,145 $518,110
Net income retained
$3,660,410 $3,142,300
Retained earnings, beginning of year
$4,194,555 $3,660,410
Retained earnings, end of year
Calculate the following profitability ratios for 2020. (Round answers to 1 decimal place e.g. 50.1%)
a. Gross margin percentage
b. Return on assets
c. Return on common stockholders' equity
