Accounting Ratios

Critterz Veterinary Supply Co. Ratios (14 points) 12/31/2023 12/31/2022 Current ratio Acid test ratio Inventory Turnover Days in Inventory Debt ratio Gross Profit Percentage Return on Common Stockholders Equity Questions: (each 2 point) Enter answer in cells below 1. The financial risk of the organization is evaluted using which ratio? 2. The profitablility of each sales dollar above the cost of the products sold is measured with which ratio? 3. Has the ability to pay current liabilities immediately with current liquid assets is measured with which ratio? 1 Data to be used to complete Requirements: 2 Critterz Veterinary Supply Co. 3 Balance Sheets 4 As of December 31, 2023, 2022, and 2021 5 6 12/31/2023 12/31/2022 12/31/2021 7 Assets 8 Cash $ 13,800 $ 12,200 $ 10,100 9 Accounts receivable 36,800 31,400 28,200 10 Inventory 13,400 11,000 8,000 11 Prepaid expenses 9,000 7,000 6,000 12 Total current assets 73,000 61,600 52,300 13 Property, plant & equip, net 251,700 185,000 107,100 14 Intangible assets 3,500 2,000 2,000 15 Other long-term assets 12,400 9,500 8,500 16 Total long-term assets 267,600 196,500 117,600 17 Total assets $ 340,600 $ 258,100 $ 169,900 8 19 Liabilities and Equity 20 Liabilities 21 Accounts payable $ 45,600 $ 36,500 $ 31,200 22 Long-term loans payable 50,000 48,000 45,000 23 Total liabilities 95,600 84,500 76,200 24 Equity 25 Preferred stock, 2% 4,000 4,000 4,000 26 Common stock 6,000 5,000 5,000 27 Retained earnings 239,000 168,600 88,700 28 Total equity 245,000 173,600 93,700 29 Total liabilities and equity $ 340,600 $ 258,100 $ 169,900 30 31 Critterz Veterinary Supply Co. 32 Income Statements 1 Critterz Veterinary Supply Co. 2 Income Statements 3 For years ending 4. 12/31/2023 12/31/2022 12/31/2021 5 6 Sales (all credit sales) $ 302,600 $ 322,900 $ 335,200 7 Cost of goods sold 174,500 182,000 191,000 -8 Gross profit $ 128,100 $ 140,900 $ 144,200 59 General and administrative expenses 29,200 28,600 30,200 40 Operating income 98,900 $ 112,300 $ 114,000 41 Interest expense 2,200 2,100 1,800 42 Income before taxes $ 96,700 $ 110,200 $ 112,200 43 Tax expense 18,300 22,300 21,000 44 Net income $ 78,400 $ 87,900 $ 91,200 45 46 49 47 Critterz Veterinary Supply Co. 48 Statement of Retained Earnings For years ending 50 12/31/2023 12/31/2022 12/31/2021 51 Beginning retained earnings 168,600 88,700 5,500 52 Net income 78,400 87,900 91,200 53 Less dividends (8,000) (8,000) (8,000) 54 Less Common stock dividends (3,000) (3,000) (3,000) 55 Ending retained earnings 239,000 168,600 88,700 56 57 58