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Alpha company has the following comparative balance sheet data: Alpha Company Balance Sheets December 31 2020 2019 Cash 20,000 40,000 Accounts receivable (net) 70,000
Alpha company has the following comparative balance sheet data: Alpha Company Balance Sheets December 31 2020 2019 Cash 20,000 40,000 Accounts receivable (net) 70,000 50,000 Inventory 60,000 65,000 Plant assets (Net) 2,00,000 1,65,000 3,50,000 3,20,000 Accounts payable 53,000 62,000 Mortgage payable (6%) 102,000 98,000 Common stock, $10 per 1,45,000 1,20,000 Retained earnings 50,000 40,000 3,50,000 3,20,000 Additional information for 2020: 1. Net income was $45,000 2. Sales on account were $450,000. Sales returns and allowances were 350,000 3. Cost of goods sold was $218,000. Requirements: Compute the following ratios at December 31, 2020 (a) Current Ratio (b) Inventory Turnover Ratio (c) Debt to Equity Ratio (d) Profit Margin (e) Return on Assets.
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