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1. Current ratio 2. Days sales uncollected 3. Inventory turnover 4. Profit margin 5. Return on assets 6. Return on equity 7. Debt to equity
1. Current ratio
2. Days sales uncollected
3. Inventory turnover
4. Profit margin
5. Return on assets
6. Return on equity
7. Debt to equity
8. Times interest earned
9. P/E ratio
10. Operating cycle
IV. Calculations (45%) Based on the following statements, fill in blanks (1.5% each) and calculate the ratios (3% each, show the process). Stock information: On December 31, stock price: $30/share, 4,000,000 shares outstanding. Cancun Corporation Income Statement for the year ended Dec. 31, 2019 000 Net Sales $200,000 - Cost of goods sold (a) Gross margin 80,000 40,000 - Selling expenses -Administration expenses (b) Operating Income before tax 20,000 -Interest expense 4,000 Income before tax (c) Tax expense (d) Net Income $12,000 Cancun Corporation Balance Sheet Dec. 31, 2019 000' Assets Cash $3,000 $8,000 Marketable securities Accounts receivable 20,000 (h) Inventory Current Assets 10,000 12,000 30,000 50,000 20,000 Liabilities and SE Accounts payable Notes payable Current liabilities Bonds payable Total liabilities Common stock Retained earnings Stockholders' equity Total liabilities and SE 40,000 40,000 (i) Property, plant and equipment Other assets Long-term assets Total assets 60,000 $100,00 (j) 3
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