You are a member of the Board of Director's of the Trac Medical Research and you have been presented
with the firm's audited financial statements as follows:
Cash
Accounts Receivable
Inventories
Net Fixed Assets
Total Assets
Trac Medical Research Inc.
Balance Sheet
as at March 1, 2017
($ 000's)
1,000
Accounts payable
Accruals
Long-term debt
550
2,000
14,500
$18,050
Total Claims
Common stock (1 million outstanding)
Retained earnings
575
250
6,000
10,000
1,225
$18,050
Trac Medical Research Inc.
Income Statement
for the year ended
($ 000's)
March 1, 2017
Sales
Cost of Goods Sold
Gross Margin
Selling and Administrative Expenses
Earnings Before Interest and Taxes
Interest Expense
Earnings Before Taxes
Taxes
Net Profit
March 1, 2016
$12,000
$30,000
10,800
26,100
$1,200
$3,900
1,000
1,000
200
2,900
270
270
-70
2,630
921
1,710