1. Use ratios to analyze a company's liquidity and solvency. FILE HOME INSERT Paste Clipboard A1 | Calibri BIU Font Calculate Select Ratios - Excel Au PAGE LAYOUT FORMULAS DATA REVIEW VIEW 4 11 - ' % Cell Alignment Number Conditional Format as Formatting Table Styles Cells Editing Styles fx A 4 Condensed financial statements for Games Galore are summarized below: B 3 Balance Sheet 4 Cash 5 Accounts Receivable, Net 6 Inventory 7 Prepaid Insurance Year 3 Year 2 $ 185,000 $ 143,000 80,000 59,000 104,000 134,000 11,900 5,880 8 Total Current Assets 380,900 341,880 9 Property and Equipment, Net 514,500 407,000 10 Total Assets $ 895,400 $ 748,880 11 14 Total Liabilities 12 Current Liabilities 13 Long-term Liabilities 15 Contributed Capital 16 Retained Earnings $ 85,300 $ 96,800 284,000 224,000 369,300 320,800 299,000 299,000 227,100 129,080 17 Total Stockholders' Equity 526,100 428,080 $ 895,400 $ 748,880 18 Total Liabilities and Stockholders' Equity 19 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense Sheet1 $ 3,031,000 1,949,000 1,082,000 891,400 190,600 14.500 Sign In D 1. Use ratios to analyze a company's liquidity and solvency. FILE HOME INSERT Calculate Select Ratios - Excel 4 PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 ' ' % Paste Clipboard A1 BIU Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles EI Font G Styles ^ fx Condensed financial statements for Games Galore are summarized below: v A B C D 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income 30 14,500 176,100 47,000 $ 129,100 31 Required: 32 Compute the following liquidity ratios for Year 3. 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 39 Days to sell (rounded to the nearest whole day) 40 Inventory turnover (rounded to two decimal places) 41 Compute the following Solvency Ratios for Year 3. 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 Year 3. Again, USE 47 THE EXCEL ROUND FUNCTION (fx). 48 Net profit margin (rounded to one decimal place) 49 Gross profit percentage (rounded to one decimal place) Sheet1 to 1 times percent percent