Changretta Solomon Inc. Ltd. Balance Sheet Current assets $9,680 $10,838 Non-current assets 38,487 34,096 Total assets...

Transcribed Image Text:

Changretta Solomon Inc. Ltd. Balance Sheet Current assets $9,680 $10,838 Non-current assets 38,487 34,096 Total assets $48,167 $44,934 Current liabilities $4,958 $6,335 Non-current liabilities 4,766 4,217 Total liabilities 9,724 10,552 Shareholders' equity 38,443 34,382 Total liabilities and shareholders' equity $48,167 $44,934 Additional information: Average accounts receivable $1,413 $6.179 Average inventories 3,398 3,676 Average total assets 45.412 45,651 Average total shareholders' equity 34.200 33.447 For each company, calculate the following ratios: (Round answers to 1 decimal place, eg. 52.7 or 52.7%) Changretta Inc. Solomon Ltd. times times times times days days Liquidity Ratios 1. Current ratio 2. Receivables turnover 3. Inventory turnover 4. Operating cycle Solvency Ratios 5. Debt to total assets % 6. Interest coverage times % times Profitability Ratios 7. Gross profit margin % % 8. Profit margin % 9. Asset turnover times times 96 10. Return on assets 11. Return on equity % Changretta Solomon Inc. Ltd. Balance Sheet Current assets $9,680 $10,838 Non-current assets 38,487 34,096 Total assets $48,167 $44,934 Current liabilities $4,958 $6,335 Non-current liabilities 4,766 4,217 Total liabilities 9,724 10,552 Shareholders' equity 38,443 34,382 Total liabilities and shareholders' equity $48,167 $44,934 Additional information: Average accounts receivable $1,413 $6.179 Average inventories 3,398 3,676 Average total assets 45.412 45,651 Average total shareholders' equity 34.200 33.447 For each company, calculate the following ratios: (Round answers to 1 decimal place, eg. 52.7 or 52.7%) Changretta Inc. Solomon Ltd. times times times times days days Liquidity Ratios 1. Current ratio 2. Receivables turnover 3. Inventory turnover 4. Operating cycle Solvency Ratios 5. Debt to total assets % 6. Interest coverage times % times Profitability Ratios 7. Gross profit margin % % 8. Profit margin % 9. Asset turnover times times 96 10. Return on assets 11. Return on equity %

Answer rating: 100% (QA)

To calculate the required ratios we need to use the following formulas 1 Interest Coverage Ratio Ear... View the full answer