Question
4) Annex corporations comparative balance sheets are presented below Radman Corporation Balance Sheet 2018 2017 Cash 5,300.00 3,700.00 Accounts receivable 21,200.00 23,400.00 Inventory 9,000.00 7,000.00
4) Annex corporations comparative balance sheets are presented below Radman Corporation Balance Sheet 2018 2017 Cash 5,300.00 3,700.00 Accounts receivable 21,200.00 23,400.00 Inventory 9,000.00 7,000.00 Land 20,000.00 26,000.00 Buildings 70,000.00 70,000.00 Accumulated depreciation- Buildings 15,000.00 10,000.00 Total 110,500.00 120,100.00 Accounts payable 10,370.00 31,100.00 Common stock 75,000.00 69,000.00 Retained earnings 25,130.00 20,000.00 Total 110,500.00 120,100.00 MBF 1213- Managerial Accounting Limkokwing University of Creative Technology Post Graduate Centre Page 2 of 3 The 2018 income statement included net sales of $120 000.00, cost of goods sold of $70 000.00 and net income of $14 000.00 Establish the following ratios for 2018: ai) Current ratio iii) Acid- Test ratio iv) Accounts receivables Turnover v) Inventory turnover vi) Profit margin vii) Return on stockholders equity b) With each of the above ratios, advise the management on the possible business decisions.
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