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Based on this financial statement above, What could be happening to the cash and owners equity of the business store? PROFITABILITY RATIOS Industry trends Gross
Based on this financial statement above, What could be happening to the cash and owners equity of the business store?
PROFITABILITY RATIOS Industry trends Gross Profit Margin 23.6% 26% Net Profit Margin 2.5% 3.5% Return on Assets 21.3% 18% Return on Equity -133.9% 20% LIQUIDITY RATIOS 2. Current ratio 0.80 1.3 Quick ratio 0.30 0.06 Cash ratio 0.06 1.8 (cash to liabilities) Debt-to-Assets ratio 135% 80 Debt-to-Equity ratio -386% 38 TURNOVER RATIOS Inventory turnover 2.95 11 Number of days 123.79 37 Receivables turnover ** 5.71 15 Number of days 63.88 64 Approximately 70% of Sales were credit salesStep by Step Solution
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