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4) Annex corporation's 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 corporation's 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 Page 1 of 3 Limiokwing University of Creative Technology Post Graduate Centre MEF 12 13- Managerial Accounting 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 Acid-Test ratio iv) Accounts receivables Turnover 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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