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calculate one ratio from each of the following groups (three ratios total) 1. ability to pay current liabilities -current ratio, cash ratio 2. ability to

calculate one ratio from each of the following groups (three ratios total)

1. ability to pay current liabilities -current ratio, cash ratio

2. ability to pay lpng term debt - debit ratio, debt-to-equity ratio

3. profitability - profit margin ratio, rate of return on total assets.

image text in transcribed

image text in transcribed

Balance Sheet December 31, 2020 and 2019 Income Statement Years Ended December 31, 2020 and 2019 2019 2019 858,000 803,000 513,000 509,000 45,000 294,000 2020 2020 Net Sales Revenue Cost of Goods Sold Current Assets: 29,000 32000 Gros Proft 114,00085,000Operating Expenses: Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory Prepaid Expenses 113,000 000 Selling Expenses Administrative Expenses Total Operating Expenses 126,000 114,000 118,000123,000 244,000 237,000 57,000 Total Current Assets Property, Plant, and Equipment, Net Long-term Investments Total Assets 262,000236,000 507,000 399,000 Operating Income Other Income and (Expenses) 101,000 S 787,000 S644,000 Interest Revenue Interest Expense Total Other Income and (Expenses) Liabilities (24,000) (14,000) Current Liabilities (20,000) (14,000) S 73,000 68,000 Accounts Payable Accrued Liabilities Income Before Income Taxes Income Tax Expense Net Income Notes Payable S 48,000 26,000 Total Current Liabilities Long-term Liabilities 142,000 289,000 431,000 198,000 324,000 Total Liabilities Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders Equity 170,000 356,000 787,000 186,000 186,000 134,000 320,000 644.000

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