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:
$\begin{array}{c}\begin{array}{|l|}\hline \\\hline \text {Current Ratio}\\\hline \text {Quick Ratio}\\\hline \text {Days Accounts Receivable}\\\hline \text {Days Inventory}\\\hline \text {Days Accounts Payable}\\\hline \text {Net Days Working Capital}\\\hline \text {Long-term Debt to Long-term Capital Ratio}\\\hline \text {Long-term Debt to Shareholders' Equity ratio}\\\hline \text {Liabilities to Total Assets}\\\hline \text {Interest Coverage ratio}\\\hline \text {N/A - Not Applic able for the given year}\\\hline \end{array}\begin{array}{l|}\hline 2011\quad\quad\quad\quad\quad\\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \end{array}\begin{array}{l|}\hline 2010\quad\quad\quad\\\hline \\\hline \\\hline \text {N/A}\\\hline \text {N/A}\\\hline \text {N/A}\\\hline \text {N/A}\\\hline \\\hline \\\hline \\\hline \text {N/A}\\\hline \\\hline \end{array}\end{array}$

---

Definitions:

Electroconvulsive Therapy

A medical treatment involving the application of short electrical bursts to the brain, used primarily to treat severe depressive and psychotic disorders.

Cognitive-Behavioral Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aimed at changing negative patterns.

Psychoanalysis

Psychoanalysis is a set of psychological theories and therapeutic techniques related to the study of the unconscious mind, originally developed by Sigmund Freud.

Free Association

A psychoanalytic technique in which a patient speaks freely about thoughts, images, and sensations to explore unconscious processes.