At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:
At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:
Gross profit margin?
Current ratio?
Days inventory?
Average collection period?
Days purchases outstanding?
Leverage ratio?
Debt-to-equity ratio?
Asset turnover?
Cash conversion cycle?
Interest coverage ratio?
Note:round your answers to two decimal places.
A B C E F G H J K L M N COMFY HOME COMPANY Balance Sheet As of December 31, 2016 Current Assets: Current Liabilities: 7 Cash $ 110,000 Accounts Payable 90,000 Accounts receivable $ 140,000 Salaries and wages payable 20,000 Inventories $ 310,000 Current portion of bank loan 45,000 10 Prepaid expenses $ 25,000 Deferred revenue 15,000 11 Total Current Assets $ 585,000 Total Current Liabilities $ 170.000 12 13 Non-Current Assets: Non-Current Liabilities: 14 Furniture and fixtures 5 120,000 Bank Loan $ 300,000 15 Buildings and property $ 450,000 Total Non-Current Liabilities $ 300,000 16 (Accumulated Depreciation) $ (154,000) 17 Total Non-Current Assets $ 416,000 Owners' Equity: 18 Contributed Capital $ 250,000 19 Retained earnings $ 281,000 20 Total Equity $ 531,000 21 22 Total Assets Total Liabilities and Owners' Equity $1,001,000 23 24 25 26 27 COMFY HOME COMPANY COMFY HOME COMPANY 28 Balance Sheet Income Statement 29 As of December 31, 2017 For the year ending December 31, 2017 30 31 32 Current Assets: Current Liabilities: Total Revenue $1,598,000 33 Cash $ 95,000 Accounts Payable $ 192,000 Cost of Goods Sold 5 958,000 34 Accounts receivable $ 310,000 Salaries and wages payable 28,000 Gross Profit $ 640,000 35 Inventories $ 358,000 Current portion of bank loan 45.000 Salaries and wages 195,000 36 Prepaid expenses $ 33,000 Deferred revenue S 23.000 Marketing expenses 48,000 37 Total Current Assets 796.000 Total Current Liabilities $ 288.000 Selling, General, and Administrative 93,000 38 Insurance expense S 39,000 39 Non-Current Assets: Non-Current Liabilities: Depreciation expense 40,000 40 Furniture and fixtures $ 135,000 Bank Loan $ 255,000 Operating Profit $ 225,000 41 Buildings and property 5 500,000 Total Non-Current Liabilities $ 255,000 Interest $ 27,000 42 (Accumulated Depreciation) 5 (194,000) Taxes $ 35,000 43 Total Non-Current Assets $ 441,000 Owners' Equity: Net Income $ 163,000 44 Contributed Capital 5 250,000 45 Retained earnings 5 444,000 46 Total Equity $ 694,000 47 48 Total Assets Total Liabilities and Owners' Equity $1,237,000 49
