Table 18-10
La Rue Company Reported the Following Data * All Sales Are on Account

question 161

Essay

Table 18-10
La Rue Company reported the following data:
$\begin{array}{|l|r|}\hline\text { INCOME STATEMENT }\\\hline&2017\\\hline \text { Sales } & \$ 279,355 \\\hline \text { Cost of goods sold } & 167,400 \\\hline \text { Gross margin } & 111,955 \\\hline \text { Operating expenses: } & \\\hline \text { Sales and marketing expense } & 31,750 \\\hline \text { General and administrative expense } & 49,687 \\\hline \text { Research and development expense } & 15,000 \\\hline \text { Other operating expense } & 7,882 \\\hline \text { Total operating expenses } & 104,319 \\\hline \text { Operating income } & 7,636 \\\hline \text { Interest expense } & 3,580 \\\hline \text { Income tax expense } & 1,419 \\\hline \text { Net income (loss) } & \$ 2,637 \\\hline\end{array}$ * All sales are on account.
Other information:
1. The market price of the company's shares on December 31, 2017 was $0.62
2. A $2 per share dividend was paid on the preferred shares.
3. 4,000 common shares were issued on July 1, 2017.
4. An $18,000 dividend was paid on the common shares on November 15, 2017
-Refer to Table 18-10.Determine the results for the following ratios for 2017:
1.Current ratio
2.Inventory turnover
3.Quick ratio
4.Accounts-receivable turnover
5.Debt ratio
6.Times-interest-earned ratio
7.Earnings per share
8.Price/earnings ratio for common shares

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Definitions:

Major Depressive Disorder

A mental health disorder characterized by persistent feelings of sadness, lack of interest in activities, and a range of emotional and physical symptoms.

Depressed Mood

A persistent feeling of sadness, hopelessness, and loss of interest, which can affect thoughts, behavior, feelings, and sense of well-being.

Daily Activities

Tasks and behaviors engaged in regularly, contributing to one's routine living.

Eating Disorder

A mental disorder characterized by abnormal eating habits that negatively affect a person's physical or mental health.