Refer to the Financial Statement Data for Patriot Corp $\text {Patriot Corp.}$

question 46

Essay

Refer to the financial statement data for Patriot Corp. for 2011 and 2010. Complete the table by computing the ratios.
$\text {Patriot Corp.}$
$\text {Bnlamce Slicet}$
$\begin{array}{lcc}\text {As of December 31 ,}&2011&2010\\\text { Assets: }&&\\\text { Cash andCash Equivalents } & \$ 69,000 & \$ 55,250 \\\text { AccountsReceivable } & 126,500 & 80,750 \\\text { Inventory } & \underline{92,000}&\underline{63,750}\\ \text { Curent Assets }&287,500&199,750\\\\\text { Equipment } & 194,063 & 148,750 \\\text { Less: Accumulated depreciation } &\underline{-38,813}& \underline{-29,750} \\\text { Equipment-Net } & 155,250 & 119,000\\\text {Land}&132,250&106,250\\\\\text { Total assets: }&\underline{\$575,000}&\underline{\$425,000}\\\text { Liabilities: }\\\text { Accounts Payable } & \$ 69,000 & \$ 42,500 \\\text { Accrued Salaries Payable } & 51,750 & 42,500 \\\text { Rent Expense Payable } & 35,750 & 28,500 \\\text { Income Tax Payable } & \underline{4,788} & \underline{1,250} \\\quad \text { Current Liabilities } & 161,288&114,750\\\\\text {Long-term note payable}&\underline{172,500}&\underline{102,000}\\\text {Total Liabilities}&33,788&216,750\\\text {Stocklolders' Equity:}&\\\text {Common stock} &115,000&89,250\\\text {Retained earnings}&\underline{126,212}&\underline{119,00}\\\\\text {Total liabilitiesand stocklolders' equity:}&\$575,000&\$425,000\end{array}$
$\text {Patriot Carp.}$
$\text {Ineome Strtument}$
$\text {For the year ended December 31, 2011}$


$\begin{array}{llcc} \text { Revenues } & \$373,750 \\ \text {Cost of goods sold } &\underline{(224,250)}\\ \text { \quad Gross Profit } &&149,500\\\\ \text {\underline{Operating Expenses}}&&\\\text {Depreciation expense}&(9,062)\\\text {Salary expense}&(56,063)\\\text {Insurance Expense}&(44,850)\\\text {Rent Expense }&(18,688)\\\text {\quad Interest Expense }& \underline{ (6,120)}\\\text {Total Operating Expenses}&&\underline{(134,783)}\\\\\text {Income from Operations}&&14,717\\\text { Income Tax Expense}&&\underline{(4415)}\\\\\text {Net income}&&\underline{\$10,302}\\\\\text {Dividends paid to Common Shareholders}&\$3,090\end{array}$
Financial Ratio to be calculated:
$\begin{array}{c}\begin{array}{|l|}\hline \\\hline \text {Current Ratio}\\\hline \text {Quick Ratio}\\\hline \text {Days Accounts Receivable}\\\hline \text {Days Inventory}\\\hline \text {Days Accounts Payable}\\\hline \text {Net Days Working Capital}\\\hline \text {Long-term Debt to Long-term Capital Ratio}\\\hline \text {Long-term Debt to Shareholders' Equity ratio}\\\hline \text {Liabilities to Total Assets}\\\hline \text {Interest Coverage ratio}\\\hline \text {N/A - Not Applic able for the given year}\\\hline \end{array}\begin{array}{l|}\hline 2011\quad\quad\quad\quad\quad\\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \end{array}\begin{array}{l|}\hline 2010\quad\quad\quad\\\hline \\\hline \\\hline \text {N/A}\\\hline \text {N/A}\\\hline \text {N/A}\\\hline \text {N/A}\\\hline \\\hline \\\hline \\\hline \text {N/A}\\\hline \\\hline \end{array}\end{array}$

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Definitions:

Labelling Theory

The assertion that once labelled as deviant, people come to accept the label as part of their identity.

Deviant

Behavior that violates the norms, values, or expectations of a group or society, which can provoke negative or positive reactions from others.

Murder

The unlawful premeditated killing of one human being by another.

Crimes

Acts that violate legal statutes and are punishable by the state or other authority.