Calculations

Based on the following statements, fill in blanks (1.5% each) and calculate the ratios (3% each, show the process). Stock information: On December 31, stock price: $30/share, 4,000,000 shares outstanding. Cancun Corporation Income Statement for the year ended Dec. 31, 2019 Net Sales $200,000 - Cost of goods sold (a) Gross margin 80,000 - Selling expenses 40,000 -Administration expenses (b) Operating Income before tax 20,000 -Interest expense 4,000 Income before tax (c) Tax expense (d) Net Income $12,000

Cancun Corporation Balance Sheet Dec. 31, 2019 Assets Liabilities and SE Cash $3,000 Accounts payable $8,000 Marketable securities (e) Notes payable (g) Accounts receivable 10,000 Current liabilities 20,000 Inventory 12,000 Bonds payable (h) Current Assets 30,000 Total liabilities 40,000 Property, plant and equipment 50,000 Common stock 40,000 Other assets 20,000 Retained earnings (i) Long-term assets (f) Stockholders' equity 60,000 Total assets $100,00 Total liabilities and SE (j)

1. Current ratio 2. Days sales uncollected 3. Inventory turnover 4. Profit margin 5. Return on assets 6. Return on equity 7. Debt to equity 8. Times interest earned 9. P/E ratio 10. Operating cycle