For year ended 12/31/10, Firm H sold 100,000 units of product at a price of $10 per unit. The Gross Margin was 70% and S,G &A was 10% of Sales. Year- End Debt was 1,000,000 on which a 10% interest rate is paid for the year. The after -Tax Rate is 80% and the Dividends payout rate is 60%. As of 12/31/2010, Assets totaled $ 7,000,000. Year 2010 was the firm's first year of operations.
Please can you help with the following ratios analysis for firm H (i.e. Profitability, Liquidity, Debt ratio)
Income Statement
Sales 100000 x 10 1,000,000
Less: COSG 70% 700,000
Less: Selling and Admin 100,000 expense
EBIT 200,000 Tax at 80% 800,000
EAT 200,00
Statement of Retained Earnings
EAT 200,000 Less: Dividend Paid 60% 120,000
Retained Earnings 8000
Statement of Owners Equity
Common Stock 6,000,000
Retained earnings 8000 Total 6000 8000