Question
Below is the 2021 and 2022 Statement of Financial Position and Statement of Income for Meadow Farms Inc. From the data above, calculate the following
Below is the 2021 and 2022 Statement of Financial Position and Statement of Income for Meadow Farms Inc. From the data above, calculate the following ratios. Current Ratio,Quick Ratio,Debt to Equity ratio 2022/2021
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Cash |
| $300,000 |
| $150,000 |
Short term investment |
| 800,000 |
| 550,000 |
Accounts receivable |
| 900,000 |
| 850,000 |
Inventory |
| 200,000 |
| 250,000 |
Current assets |
| 2,200,000 |
| 1,800,000 |
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Land |
| 800,000 |
| 600,000 |
Building, at cost |
| 900,000 |
| 700,000 |
Building, accumulated depreciation |
| (300,000) |
| (250,000) |
|
| 1,400,000 |
| 1,050,000 |
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|
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Total Assets |
| 3,600,000 |
| 2,850,000 |
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Accounts payable |
| 450,000 |
| 350,000 |
Long-term debt |
| 615,000 |
| 400,000 |
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Common shares |
| 1,000 |
| 1,000 |
Retained earnings |
| 2,534,000 |
| 2,099,000 |
Total shareholders equity |
| 2,535,000 |
| 2,100,000 |
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|
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Total Liabilities and Equity |
| 3,600,000 |
| 2,850,000 |
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Net Sales |
| $4,000,000 |
| $5,700,000 |
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Cost of goods sold |
| 3,000,000 |
| 5,000,000 |
Gross Profit |
| 1,000,000 |
| 700,000 |
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Depreciation expense |
| 50,000 |
| 75,000 |
Operating expenses |
| 280,000 |
| 290,000 |
|
| 330,000 |
| 365,000 |
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|
|
Net Income before taxes |
| $670,000 |
| $335,000 |
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