Question
A friend has been offered a sales position at Draper Media, Inc., a small publisher of computer-related publications, but wants to know more about the
A friend has been offered a sales position at Draper Media, Inc., a small publisher of computer-related publications, but wants to know more about the company. Because of your expertise in financial analysis, you offer to help analyze Drapers financial health. Draper has provided the following selected financial information:
Account balances on December 31, 2020:
Inventory $ 72,000
Net sales 450,000
Current assets 150,000
Cost of goods sold 290,000
Total liabilities 180,000
Net profit 35,400
Total assets 385,000
Current liabilities 75,000
Other information:
Number of common shares outstanding 25,000
Inventory at January 1, 2020 48,000
Assignment:
- Calculate the following ratios for 2020:
- acid-test (quick) ratio
- inventory turnover ratio
- net profit margin
- return on equity
- debt-to-equity ratio
- earnings per share.
and show work for everything either on word or excel
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Accounting Information Systems
Authors: Vernon Richardson, Chengyee Chang
1st edition
78025494, 978-0078025495
