Understanding financial ratios in a case study financial plans and

Income Statement, Eden’s Garden Net Sales Revenue*

$689,247

Cost of Goods Sold

Beginning Inventory, 1/1/xx

$78,271

+ Purchases

$403,569

Goods available for Sale

$481,840

– Ending Inventory, 12,31/xx

$86,157

Cost of Goods Sold

$395,683

Gross Profit

$293,564

Operating Expenses

Advertising

$22,150

Insurance

$9,187

Depreciation

Building

$26,705

Autos

$7,895

Equipment

$11,200

Salaries

$116,541

Uniforms

$4,018

Repairs and Maintenance

$9,097

Travel

$2,658

Entertainment

$2,798

Total Operating Expenses

$212,249

General Expenses

Utilities

$7,987

Telephone

$2,753

Professional Fees

$3,000

Postage

$1,892

Payroll Taxes

$11,589

Total General Expenses

$27,221

Other Expenses

Interest Expense

$21,978

Bad check Expense

$679

Miscellaneous expense

$1,248

Total Other Expenses

$23,905

Total Expenses

$263,375

Net Income

$30,189