Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Condensed financial statements for Games Galore are summarized below: Balance Sheet Cash Accounts Receivable, Net Inventory Prepaid Insurance Total Current Assets Property and Equipment,
Condensed financial statements for Games Galore are summarized below: Balance Sheet Cash Accounts Receivable, Net Inventory Prepaid Insurance Total Current Assets Property and Equipment, Net Total Assets Current Liabilities Long-term Liabilities Total Liabilities 2016 2015 $ 185,000 $ 143,000 80,000 59,000 104,000 134,000 11,900 5,880 380,900 341,880 514,500 407,000 $ 895,400 $ 748,880 $ 85,300 $ 96,800 284,000 224,000 369.300 320,800 Contributed Capital 299,000 299,000 Retained Earnings 227,100 129,080 Total Stockholders' Equity 526,100 428,080 Total Liabilities and Stockholders' Equity $ 895,400 $ 748,880 Income Statement Net Sales (all on account) Cost of Goods Sold $ 3,031,000 1,949,000 Gross Profit Operating Expenses 1,082,000 891,400 Income from Operations 190,600 Interest Expense 14,500 Income before Income Tax Expense 176,100 Income Tax Expense 47,000 Net Income $ 129,100 Required: Compute the following liquidity ratios for 2016. Round to the required number of decimal places USING THE EXCEL. ROUND FUNCTION (fx). Current ratio (rounded to one decimal place) Receivables turnover (rounded to two decimal places) Days to collect (rounded to the nearest whole day) Inventory turnover (rounded to two decimal places) Days' sales in inventory (rounded to the nearest day) Compute the following Solvency Ratios for 2016. Again, USE THE EXCEL ROUND FUNCTION (fx). to 1 times days times days Debt to assets (rounded to two decimal places) Times interest earned (rounded to one decimal place) to 1 times Compute the following Profitability Ratios for 2016. Again, USE THE EXCEL ROUND FUNCTION (fx). Profit margin ratio (rounded to one decimal place) percent Gross margin ratio (rounded to one decimal place) percent
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