Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Ratios Bumpy Airlines 2019 Income Statement Sales 1,020,000 Cost of goods sold 693,600 Other costs 224,400 Depreciation 61,200 EBIT/operating income 40,800 Interest expense 25,500
1. Ratios Bumpy Airlines 2019 Income Statement Sales 1,020,000 Cost of goods sold 693,600 Other costs 224,400 Depreciation 61,200 EBIT/operating income 40,800 Interest expense 25,500 Earnings before tax 15,300 Taxes (25%) 3,825 Net Income 11,475 Bumpy Airlines Balance Sheet 2019 Cash 122,400 Accounts payable Accounts receivable 122,400 Notes payable Inventory 35,700 Long-term debt Paid-in capital Net fixed assets 612,000 Retained earnings Total Assets 892,500 Total liab. and equity Calculate the following ratios for the company: 2019 75,863 30,600 306,000 255,000 225,038 892,500 Current Ratio Quick Ratio Inventory Turnover Days Inventory on Hand Receivables Turnover Days Receivables A/R Times interest earned D/E ratio Total debt ratio ROS/profit margin ROA ROE Total asset turnover If you are owner looking to earn at least 10% on your investment, which of these ratios is most relevant
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started