1. Use ratios to analyze a company's liquidity and solvency. Calculate Select Ratios - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Clipboard Calibri Paste BIU Font A1 fx A 11 ' % - Alignment Number Cell Conditional Format as Formatting Table Styles Cells Editing Styles Condensed financial statements for Games Galore are summarized below: B C 1 Condensed financial statements for Games Galore are summarized below: 2 3 Balance Sheet 4 Cash 5 Accounts Receivable, Net 6 Inventory 7 Prepaid Insurance 2016 2015 $ 185,000 $ 143,000 80,000 104,000 59,000 134,000 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 14 Total Liabilities 11 12 Current Liabilities 13 Long-term Liabilities 15 Contributed Capital 16 Retained Earnings 17 Total Stockholders' Equity $ 85,300 $ 96,800 284,000 224,000 369,300 320,800 299,000 299,000 227,100 129,080 526,100 428,080 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 24 Operating Expenses Income from Operations Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required: Compute the following liquidity ratios for 2016. Round to the required number of decimal places USING THE EXCEL. ROUND FUNCTION (fx). Current ratio (rounded to one decimal place) Receivables turnover (rounded to two decimal places) Days to collect (rounded to the nearest whole day) Inventory turnover (rounded to two decimal places) Days' sales in inventory (rounded to the nearest day) $ 3,031,000 1,949,000 1,082,000 891.400 190,600 14,500 176,100 47,000 $ 129,100 to 1 times days times days Compute the following Solvency Ratios for 2016. Again, USE THE EXCEL ROUND FUNCTION (fx). Debt to assets (rounded to two decimal places) Times interest earned (rounded to one decimal place) to 1 times 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 Sign In D