Question
Do Know Profit, Inc. 2018 statement of comprehensive income ($ in millions) Net sales $8800 Cost of goods sold 5600 Depreciation 900 Earnings before interest
Do Know Profit, Inc. 2018 statement of comprehensive income ($ in millions) | |
Net sales
| $8800 |
Cost of goods sold | 5600 |
Depreciation | 900 |
Earnings before interest and taxes | 2300 |
Interest paid | 350 |
Taxable Income | 1950 |
Taxes | 550 |
Net income | 1400 |
Dividends paid | 900 |
Addition to retained earnings | 500 |
Do Know Profit Inc. 2017 and 2018 Statement of financial positions ($ in millions) | |||||
| 2017 | 2018 |
| 2017 | 2018 |
Cash | $170 | $110 | Accounts payable | 135 | 120 |
A/R | 500 | 700 | Notes payable | 1200 | 1400 |
Inventory | 1240 | 1000 | Total | 1335 | 1520 |
Total | 1910 | 1810 | Long-term debt | 2005 | 2620 |
Net fixed assets | 2000 | 3500 | Common stock | 100 | 200 |
|
|
| Retained earnings | 470 | 970 |
Total Assets | 3910 | 5310 | Total liab. & equity | 3910 | 5310 |
Calculate the Current ratio, Debts ratio of 2017 and 2018. Calculate TIE of 2018. Give brief comments to each of the ratios
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