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Accounts Receivable $20,000 ($30,000 in the previous year) Total Current Assets $300,000 Investments $50,000 Total Assets $1,000,000 Total Current Liabilities $100,000 Total Long-Term Debt $400,000
Accounts Receivable | $20,000 ($30,000 in the previous year) |
Total Current Assets | $300,000 |
Investments | $50,000 |
Total Assets | $1,000,000 |
Total Current Liabilities | $100,000 |
Total Long-Term Debt | $400,000 |
Total Liabilities | $500,000 |
Net Income | $300,000 |
Total Revenue (Sales) | $900,000 |
Industry average: Current ratio | 1 |
Industry average: Solvency ratio | 2.5 |
Industry average: Profit margin ratio | 35% |
(1) What is the Profit Margin of this company; and (2) who would prefer a higher profit margin ratio? (Round to the nearest whole number)
(1) What is the Solvency Ratio of this company; and (2) who would prefer a higher solvency ratio?
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