Question
A recent blance sheet of Save-a- Lot STores is provided as follows: ASSETS Cash $16,320 Accounts Recivable $17,280 Office Supplies $720 Prepaid rent $4,080 Equipment
A recent blance sheet of Save-a- Lot STores is provided as follows:
ASSETS | ||
Cash | $16,320 | |
Accounts Recivable | $17,280 | |
Office Supplies | $720 | |
Prepaid rent | $4,080 | |
Equipment | $28,800 | |
Accumulated depreciation:equipment | ($11,520) | $17,280 |
Total assets | $55,680 | |
LIABILITIES | ||
Accounts payable | $5,280 | |
Income taxes payabee | $4,320 | |
Total liablilties | $9,600 | |
Stockholder's equity | ||
Capital Stock | $24,000 | |
Retained earnings | $22,080 | |
Total Stockholders equity | $46,080 | |
total liabiblites and stockholder's equity | $55,680 | |
other information provided by the company is as follow is:
Total revenue for the year ended 12/31/current year $61, 200
Total expenses for the year ended 12/31/current year $45,900
Total stockholders equitye, January 1, current year $35,520
Compute and discuss briefly teh significance fo teh follwoing measures as they relate to Save- A-Lot Suppleis
a) net inclme percentage in current year
b) return on equity in current year
c) working capital on 12/31 current year
d) current ration on 12/31/ current year
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