International finance Assignment (doc)

INTERNATIONAL FINANCE

Tasty Corp.
Income Statement
Year ended December 31
2019 2018 2017
Sales
$
12,52,000
$
14,75,000
$
15,60,00
0
Less: Cost of goods sold 6,85,000 7,25,000 7,45,000
Gross margin
$
5,67,000
$
7,50,000
$
8,15,000
Operating expenses
Salaries, wages & benefits
$
1,46,000
$
1,42,000
$
1,35,000
Utilities 28,400 26,500 25,000
Depreciation/amortization 24,000 35,000 35,000
Insurance 17,500 15,500 15,000
Leasing 34,000 28,000 28,000
Other 8,500 2,500 6,500
Total operating expenses $ $ $

2,58,400 2,49,500 2,44,500
Earning before interest and taxes
$
3,08,600
$
5,00,500
$
5,70,500
Interest expense 36,000 48,000 54,000
Earnings before tax
$
2,72,600
$
4,52,500
$
5,16,500
Income tax (20%) 54,520 90,500 1,03,300
Net income
$
2,18,080
$
3,62,000
$
4,13,200
Additional information:
Contribution margin 51.00% 49.00% 52.00%
Tasty Corp,
Balance Sheet
at December 31
2019 2018 2017
Assets
Current assets
Cash
$
1,85,000
$
1,48,000
$
1,56,000
Account receivable 37,500 46,500 48,000
Prepaid expenses