Income Statement and Balance Sheet, business and finance homework help

1.  Using your 2015/2016 Income Statement and Balance Sheet, add a column for percentage of total.  Compute the percentages for each line item for the financial statements.  For the 2015 Income Statement, what is the percentage of COGS as compared to total sales? Is this figure reasonable and what is COGS and why is it important to a company?

2015

ICS Manufacturing Company 
Income Statement for 2015
Sales Revenue   35,500,000
Cost of Goods Sold  12,725,000
Selling, General and Admin Exp  11,200,000
Depreciation Exp   3,200,000
EBIT   8,375,000
Interest Expense   350,000
Taxable Income   8,025,000
Taxes   3,210,000
Net Income   4,815,000

2016

ICS Manufacturing Company 
Pro Forma Income Statement for 2016
Sales Revenue   37,346,000
Cost of Goods Sold  13,297,625
Selling, General and Admin Exp  11,625,600
Depreciation Exp   3,255,000
EBIT   9,167,775
Interest Expense   375,000
Taxable Income   8,792,775
Taxes   3,517,110
Net Income   5,275,665
ICS Manufacturing Company 
Balance Sheet for Year Ending Decemeber 2015
   
Assets   Liabilities 
Cash  2,625,000   Acounts Payable   5,825,000
Accounts Receivable   2,715,000   Other Current Liabilities   3,365,000
Inventories   1,514,000   Total Current Liabilities   9,190,000
Total Current Assets  6,854,000    
   
   
Long Term Assets    Long Term Liabilities 
P,P, & E  12,745,000   Long Term Debt  1,225,000
Goodwill   1,205,000   Other LT Debt   2,230,000
Intangible Assets  5,275,000   Total LT Debt   3,455,000
Total LT Assets   19,225,000   Total Liabilities   12,645,000
Total Assets   26,079,000    
   
  Owner’s Equity 
  Common Stock   6,425,000
  Retained Earnings   7,009,000
  Total Owners’ Equity  13,434,000
  Total Liab/OE  26,079,000
   
   
   
ICS Manufacturing Company 
Pro Forma Balance Sheet for Year 2016
   
Assets   Liabilities 
Cash  2,825,000   Acounts Payable   5,825,000
Accounts Receivable   3,122,250   Other Current Liabilities   3,365,000
Inventories   2,043,900   Total Current Liabilities   9,190,000
Total Current Assets  7,991,150    
   
   
Long Term Assets    Long Term Liabilities 
P,P, & E  14,745,000   Long Term Debt  3,225,000
Goodwill   1,205,000   Other LT Debt   3,367,150
Intangible Assets  5,275,000   Total LT Debt   6,592,150
Total LT Assets   21,225,000   Total Liabilities   15,782,150
Total Assets   29,216,150    
   
  Owner’s Equity 
  Common Stock   6,425,000
  Retained Earnings   7,009,000
  Total Owners’ Equity  13,434,000
  Total Liab/OE  29,216,150
   
Difference to balance   –