Question
A local Mom and Pap shop owner presented you with the following financial data: $115,000.00 in sales, cost of 98,000.00 in 2018 and there was
A local Mom and Pap shop owner presented you with the following financial data:
$115,000.00 in sales, cost of 98,000.00 in 2018 and there was no taxes. The owner also reported 15,000.00 in cash, 20,000.00 inventory and 30,000 of accounts payable. Also there was
60,000.00 in net fixed assets with 10,000.00 in accounts receivables. It indicated that there was 40,000.00 in long term debt.
You must show your computation to earn the assigned points. Based on the above financial data:
A. Compute the current ratio
B. Compute the quick ratio
C. What is the return on Equity
D. What is the total debt to Equity ratio
E. What is the profit margin
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