1. Use ratios to analyze a company's liquidity and solvency. Calculate Select Ratios - Excel 3 FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 AA % Paste BIU- A Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Font Styles B35 X fx A B C D 1 Condensed financial statements for Games Galore are summarized below: 2 3 Balance Sheet 2016 2015 4 Cash 5 Accounts Receivable, Net 6 Inventory 7 Prepaid Insurance 8 Total Current Assets S 185,000 $ 143,000 80,000 59,000 104,000 134,000 11,900 5,880 380,900 341,880 9 Property and Equipment, Net 514,500 407,000 10 Total Assets $ 895,400 $ 748,880 11 12 Current Liabilities 13 Long-term Liabilities $ 85,300 $ 96.800 284,000 224,000 14 Total Liabilities 369,300 320,800 15 Contributed Capital 299,000 299,000 16 Retained Earnings 227,100 129,080 17 Total Stockholders' Equity 526,100 428,080 18 Total Liabilities and Stockholders' Equity $ 895,400 $ 748,880 19 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit $ 3,031,000 1,949,000 1,082,000 A Calculate Select Ratios - Excel DATA REVIEW VIEW M Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Styles FILE HOME INSERT PAGE LAYOUT FORMULAS Calibri -11 4 AA % Paste BIU A Clipboard Font B35 X fx A 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income 30 31 Required: B Sign In B C D 1,082,000 891,400 190,600 14,500 176,100 47,000 $ 129,100 32 Compute the following liquidity ratios for 2016. Round to the 33 required number of decimal places USING THE EXCEL. 34 ROUND FUNCTION (fx). Current ratio (rounded to one decimal place) Receivables turnover (rounded to two decimal places) 35 36 37 Days to collect (rounded to the nearest whole day) 38 Inventory turnover (rounded to two decimal places) 39 Days' sales in inventory (rounded to the nearest day) 40 41 Compute the following Solvency Ratios for 2016. Again, USE 42 THE EXCEL ROUND FUNCTION (fx). to 1 times days times days 43 Debt to assets (rounded to two decimal places) 44 Times interest earned (rounded to one decimal place) 45 46 Compute the following Profitability Ratios for 2016. Again, USE 4 READY Attempt(s) 5/5 Sheet1 to 1 times + 100% Hint Show Me FILE HOME INSERT PAGE LAYOUT Calculate Select Ratios - Excel FORMULAS DATA REVIEW VIEW m X Sign In Calibri 11 A A 96 M Paste BIU A Alignment Number Conditional Format as Cell Formatting Table Styles Cells Editing Clipboard Font Styles B35 5 A C D 32 Compute the following liquidity ratios for 2016. Round to the 33 required number of decimal places USING THE EXCEL. 34 ROUND FUNCTION (fx). 35 Current ratio (rounded to one decimal place) Receivables turnover (rounded to two decimal places) Days to collect (rounded to the nearest whole day) 36 37 38 39 Days' sales in inventory (rounded to the nearest day) 40 Inventory turnover (rounded to two decimal places) 41 Compute the following Solvency Ratios for 2016. Again, USE 42 THE EXCEL ROUND FUNCTION (fx). to 1 times days times days 43 Debt to assets (rounded to two decimal places) 44 Times interest earned (rounded to one decimal place) to 1 times 45 46 Compute the following Profitability Ratios for 2016. Again, USE 47 THE EXCEL ROUND FUNCTION (fx). 48 Profit margin ratio (rounded to one decimal place) percent 49 Gross margin ratio (rounded to one decimal place) percent 50 51 52 53 READY Attempt(s) 5/5 Sheet1 www Hint 100% Show Me