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2020 2019 Name of Ratio Calculation Ratio Calculation Ratio 1 Current ratio 39271 48839 0.80 21760 37930 0.57 2 Debt to total assets 54839 116071
2020 | 2019 | ||||
Name of Ratio | Calculation | Ratio | Calculation | Ratio | |
1 | Current ratio | 39271 48839 | 0.80 | 21760 37930 | 0.57 |
2 | Debt to total assets | 54839 116071 | 47.20% | 37,930 88160 | 43% |
3 | Gross profit rate | 262931 254375 | 54.10% | 254375 462500 | 55.00% |
4 | Profit margin | 37002 485625 | 7.60% | 42000 462500 | 9.10% |
5 | Return on assets | 37002 102116 | 36.2% | 42000 60670 | 69.2% |
6 | Return on common stockholders' equity | (37002 - 18000) 55731 | 34.1% | (42000 - 16800) 36705 | 68.7% |
(a) Comment your finds from the above ratios.
(b) What impact would borrowing an additional $20,000 to buy more equipment have on each of the ratios in (a) above, assuming that no changes are expected on the income statement and balance sheet? Comment on your findings.
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