Question
Company: MNO Retail Financial Data for 2023 (in $000): Item Amount Cash 10,000 Accounts Receivable 20,000 Inventory 45,000 Prepaid Expenses 5,000 Total Current Assets 80,000
Company: MNO Retail
Financial Data for 2023 (in $000):
Item | Amount |
Cash | 10,000 |
Accounts Receivable | 20,000 |
Inventory | 45,000 |
Prepaid Expenses | 5,000 |
Total Current Assets | 80,000 |
Property, Plant & Equipment | 170,000 |
Total Assets | 250,000 |
Accounts Payable | 30,000 |
Short-term Debt | 15,000 |
Other Current Liabilities | 10,000 |
Total Current Liabilities | 55,000 |
Long-term Debt | 70,000 |
Equity | 125,000 |
Total Liabilities and Equity | 250,000 |
Income Statement for 2023 (in $000):
Item | Amount |
Sales | 450,000 |
Cost of Goods Sold | 270,000 |
Gross Profit | 180,000 |
Operating Expenses | 90,000 |
Interest Expense | 20,000 |
Net Income Before Taxes | 70,000 |
Taxes | 14,000 |
Net Income | 56,000 |
Requirements:
- Calculate the Current Ratio and Quick Ratio.
- Compute the Debt to Asset Ratio.
- Determine the Gross Profit Margin and Net Profit Margin.
- Calculate the Return on Investment (ROI) and Return on Equity (ROE).
- Discuss the role of liquidity and profitability in the company's overall financial health.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started