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calculate: Current Ratio (if industry average is 2.5)/ 2. Price to Earnings Ratio (if industry average is 25) / 3. Days Collection period (365 days)
calculate: Current Ratio (if industry average is 2.5)/ 2. Price to Earnings Ratio (if industry average is 25) / 3. Days Collection period (365 days) (if industry average is 35 days) / 4. Inventory Turnover (if industry average is 15) / 5. Long Term Debt to Equity Ratio / 6. Times interest earned (if bankers expectation is 6) / 7. Net Profit Margin (If industry average is 9%) / 8. Return on Equity (if industry average is 20%) / 9. Return on Equity (if industry average is 20%) /10. Gross profit margin (if industry average is 23)
The annual financial statements of Cosmos Corporation are as below. Cosmos Corporation Income Statement for Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes OR PBT Income taxes Net income OR PAT $548,600 $397.250 $151,350 $95,600 $6,100 $49,650 $22,598 $27.052 Cosmos Corporation Balance Sheet as son December 31, 2021 Assets: Liabilities and Equity: Cash $10,000 Accounts payable Marketable Securities $8,400 Accrued wages payable Accounts receivable, net $33,700 Income taxes payable Merchandise inventory $32,150 Long-term Borrowings Prepaid expense $650 Share Capital ($10 face value) PPE assets, net $155,300 Retained earnings Total assets $240.200 Total liabilities and equity $12,500 $3,200 $3,300 $63,400 $90,000 $67,800 $240.200 Assume that Market Value per share is $80Step by Step Solution
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