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Check my work? Please check columns 2017 and 2018 Use the following information to answer the questions below: note: all sales are credit sales Income
Check my work?
Please check columns 2017 and 2018
Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: 2017 2018 less Cost of Goods Sold: Gross Profit Operating Expenses Earnings before Interest & Taxes Interest exp earnings before Taxes Sales$ 1,000,000 $1,100,000 424,000 676,000 365,750 310,250 25,500 284,750 Taxes90,000113,900 400,000 600,000 350,000 250,000 25,000 225,000 Net Income $135,000 170,850 Balance Sheet info: Cash Accounts Receivable Inventory Total Current Assets Fixed Assets (Net) Total Assets 31/201712/31/2018 30,000 50,000 51,000 125,000 $131,250 $200,000 $212,250 315,000 500,000 527,250 25,000 $ 300,000 110,000 121,000 Current Liabilities Long Term Liabilities Total Liabilities Stockholder's Equity Total Liab & Equity: $ 290,000$309,000 $210,000 $218,250 $500,000$527,250 Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and was "good" or "bad" compared to the Industry Avg in 2018 (round all numbers to 2 digits past the decimal place) indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and was "good" or "bad" compared to the Industry Avg in 2018 (round all numbers to 2 digits past the decimal place) "Good" or "Bad" compared Getting Better or 2018 GettingIndustry Industry Avg 2018 Worse? 2017 0.14 1.82 0.68 0.27 0.22 20.00 18.00 8.00 0.64 10.00 Avg Profit Margin Current Ratio Quick Ratio Return on Assets Debt to Assets Receivables turnover Avg. collection period Inventory Turnover* Return on Equity Times Interest Earned 0.16 Better 1.75 Worse 0.67 Worse 0.32 Better 0.23 Better 21.56 Better 16.69 Worse 8.38 Better 0.78 Better 12.17 Better 0.11Good 1.90 Bad 0.66 Good 28 Good .50 Bad 18.00 Good 15.50 Good 9.25 Bad 0.55Good Good Assume a 360 day year
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