% Sales % Sales % Change
Sales 375,000$ 100% 425,000$ 100% 13%
Less: Cost of Goods Sold 150,000 40% 191,250 45% 28%
Gross Margin 225,000 60% 233,750 55% 4%
Expenses:
Advertising 8,000$ 2% 18,250$ 4% 128%
Wine Depot, Inc.
Income Statemnt
for the period ended
December-2021
December-2020
13% 2% 5%
1%
10%
5%
6%
2021 Expenses
Advertising
Marketing
$100,000
Expense Comparison
Marketing 6,000 2% 3,000 1% -50%
Depreciation 9,000 2% 8,000 2% -11%
Interest 3,000 1% 1,500 0% -50%
Salary 52,000 14% 85,000 20% 63%
Wages 18,000 5% 15,000 4% -17%
Supplies 1,200 0% 7,000 2% 483%
Utilities 2,800 100,000 1% 8,500 146,250 2% 204%
Net income before taxes 125,000 33% 87,500 21% -30%
Income taxes 37,500 10% 26,250 6% -30%
% Assets % Assets % Change
Assets
Current Assets:
Cash 5,000$ 5% 7,000$ 6% 40%
Short-Term Investments 2,000 2% 3,500 3% 75%
Liabilities and Stockholders’ Equity
Liabilities
Current Liabilities:
Accounts Payable 16,000$ 16% 3,000$ 3% -81%
Income Tax Payable 6,000 6% 1,000 1% -83%
Notes Payable – Equipment 9,000 9% – 0% -100%
Notes Payable – Other 18,000 18% 3,000 3% -83%
Payroll Liabilities 2,000 51,000 2% 3,750 10,750 3% 88%
Stockholders’ Equity
Common Stock 1,000 1% 1,000 1% 0%
Retained Earnings 47,000 48,000 47% 108,250 109,250 90% 130%
Wine Depot, Inc.
Balance Sheet
as of
December-2021
December-2020
Accounts Receivable 6,000 6% 8,500 7% 42%
Inventory 6,500 7% 10,500 9% 62%
Prepaid Expenses 700 1% 500 0% -29%
Supplies 1,800 22,000 2% 2,300 32,300 2% 28%
Equipment 85,000 86% 103,700 86% 22%
Less: Accumulated Depreciation 8,000 77,000 8% 16,000 87,700 13% 100%
Profitability
Return on owners’ investment 78%
Return on total investment 57%
Wine Depot, Inc.
Ratio Analysis
December 2021
Profit margin 14%
Gross margin 55%
Current ratio 3.00
Quick ratio 1.77
Receivable turnover 58.62
Inventory turnover 22.50
Debt-to-equity 10%
Liability 9%