Chapter 12
Using Accounting Information
381
Basil's Bakery
Income Statement
For the Year Ended December 31, 2016
Sales Revenue
$6,009
Cost of goods sold
2,928
Gross Profit
3,081
Operating Expenses
Depreciation
108
Interest
518
Other operating expenses
723
Total Operating Expenses
1,349
Income from Operations
1,732
Investment income
79
Operating Income Before Tax
1,811
Income tax
516
Net Income
$1,295
*Note: the numbers in this financial statement is expressed in thousands of Canadian dollars.
In addition to the financial statements above, the following data is known. The bakery industry
average for gross profit margin is 49.47% for 2016, and the industry average for net profit margin
is 20.36% of the same time period.
In 2015, Basil’s Bakery had a gross profit margin of 52.13% and a net profit margin of 21.95%.
See Appendix I for solutions.
Basil's Bakery
Balance Sheet
As at December 31, 2016
2016 2015 % Change
% of Base-
Figure 2016
Cash
$1,650 $987
Accounts Receivable
1,175
573
Inventory
396
256
Other current assets
301
103
Total Current Assets
3,522 1,919
Property, plant & equipment
2,034 1,170
TOTAL ASSETS
$5,556 $3,089
Current Liabilities
$1,474 $547
Non-current liabilities
104
58
TOTAL LIABILITIES
1,578
605
SHAREHOLDERS' EQUITY
3,978 2,484
TOTAL LIABILITIES AND EQUITY
$5,556 $3,089
