31-Dec-18 31-Dec-19 % of Sales % Change
Sales Revenue 345,274.22$ 400,000.00$ 100% 16%
Less: Cost of Goods Sold 164,217.74 210,000.00 53% 28%
Gross Margin 181,056.48 190,000.00 48% 5%
Expenses:
Advertising 25,871.45$ 28,000.00$ 7% 8%
Kelly’s Boutique
Income Statement
For the Year Ended
16% 4%
9%
3%
5%
2019 Expenses
Advertising
Depreciation
$80,000.00
$100,000.00
$120,000.00
Expense Comparison
Depreciation 8,431.22 7,000.00 2% -17%
Interest 15,574.15 16,000.00 4% 3%
Payroll 105,487.51 109,000.00 27% 3%
Supplies expense 4,732.84 5,000.00 1% 6%
Utilities 10,847.00 9,000.00 2% -17%
Net income before taxes 10,112.31 16,000.00 4% 58%
Income taxes 3,784.44 5,000.00 1% 32%
$-
Assets 31-Dec-18 31-Dec-19 % of Assets % Change
Current Assets:
Cash 8,213.50$ 6,000.00$ 1% -27%
Accounts Receivable 35,571.95 45,000.00 8% 27%
Liabilities and Stockholders’ Equity
Liabilities
Current Liabilities:
Accounts Payable 29,663.39$ 40,000.00 7% 35%
Income Tax Payable 4,124.14 5,000.00 1% 21%
Notes Payable 72,000.00 87,000.00 15% 21%
Payroll Liabilities 3,212.47 6,000.00 1% 87%
Stockholders’ Equity
Common Stock 301,000.00 306,000.00 51% 2%
Retained Earnings 20,000.00 31,000.00 5% 55%
Kelly’s Boutique
Balance Sheet
as of
Inventory 60,214.55 92,000.00 15% 53%
Prepaid Expenses 700.00 1,500.00 0% 114%
Supplies 300.00 500.00 0% 67%
Property, Plant, and Equipment:
Land 31,000.00 25,000.00 4% -19%
Building 400,000.00 427,000.00 71% 7%
Equipment 35,000.00 33,000.00 6% -6%
Less: Accumulated Depreciation (21,000.00) (30,000.00) -5% 43%
Profitability
Return on owners’ investment 3%
Return on total investment 5%
Kelly’s Boutique
Ratio Analysis
December 2019
Profit margin 3%
Gross margin 48%
Current ratio 1.05
Quick ratio 0.37
Receivable turnover 9.93
Inventory turnover 2.76
Debt-to-equity 78%
Liability 44%