Question
Analyze the financial data for Retail Corp for the year ended December 31, 2023: Income Statement Amount Sales Revenue $700,000 Cost of Sales $420,000 Operating
Analyze the financial data for Retail Corp for the year ended December 31, 2023:
Income Statement | Amount |
Sales Revenue | $700,000 |
Cost of Sales | $420,000 |
Operating Expenses | $150,000 |
Net Income | $75,000 |
Balance Sheet | Amount |
Current Assets | $160,000 |
Total Assets | $480,000 |
Current Liabilities | $100,000 |
Total Liabilities | $220,000 |
Shareholders' Equity | $260,000 |
Requirements: a. Compute the inventory turnover ratio. b. Calculate the return on equity. c. Determine the gross profit percentage. d. Evaluate the company’s current ratio. e. Analyze the company’s profitability with net profit margin.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
