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/Desktop/THMG%20310%20Spring%202022%20Assignment%205,%20Ch%2010,%2013%20%20Appendix%20H.p Question 3 (14 marks) You are considering becoming an investor in Titan Restaurants. To make your decision you have obtained the following select financial

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/Desktop/THMG%20310%20Spring%202022%20Assignment%205,%20Ch%2010,%2013%20%20Appendix%20H.p Question 3 (14 marks) You are considering becoming an investor in Titan Restaurants. To make your decision you have obtained the following select financial information for the last 2 operating years. Current Year Preceding Year 20,000 Balance Sheet Cash Short-term investments Accounts receivables Prepaid Expenses Food & Beverage Inventory Total Current Assets lulus sises $ $ $ $ $ $ 25,000 $ 5,000 $ 45,000 $ 6,000 $ 15,000 $ 96,000 $ 48,000 5,000 20,000 93,000 Total Long-Term Assets Total Assets $ $ 1,095,000 $ 980,000 1,191,000 $1,073,000 Accounts Payable Accrued Liabilities Salary Payable Total Current Liabilities $ $ $ $ 55,000 $ 20,000 $ 33,000 $ 108,000 $ 69,000 18,000 29,000 116,000 uus Long term debt Notes payable Total Long-term Liabilities Total Liabilities $ $ $ $ 350,000 $ 40,000 $ 390,000 $ 498,000 $ 410,000 45,000 455,000 571,000 ulu Stockholder's Equity Average common stockholders' equity Preferred dividends $ $ 200,000 25,000 /Desktop/THMG%20310%20Spring%202022%20Assignment%205,%20Ch%2010,%2013%20%20APF Total Long-term Liabilities $ 390,000 $ 455,000 Total Liabilities $ 498,000 $ 571,000 Stockholder's Equity Average common stockholders' equity Preferred dividends $ $ 200,000 25,000 Income Statement Net Sales Revenues Cost of Goods Sold Operating Expenses $ $ $ 408,300 245,000 60,000 Industry Benchmarks Current Ratio Inventory Turnover Accounts Receivable Turnover Return on Total Assets Return on common stockholders' equity Gross Profit Percentage Debt to Assets ratio 1.05 15 9 9% 35% 32% 28% Required a. Calculate the following ratios for the current year: a. Current ratio b. Inventory turnover C. Accounts receivable turnover d. Return on assets e. Return on common stockholder's equity f. Gross profit percentage 8. Debt to assets ratio b. Discuss the results comparing to industry averages given below. Would you invest in this company? When making your decision consider the company's liquidity, profitability, and solvency compared to the industry

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