Excel SIM: Calculate Select Ratios 1. Use ratios to analyze a company's liquidity and solvency. Clipboard Font Al x fx A Condensed financial statements for Games Galore are summarized below: 1 Condensed financial statements for Games Galore are summarized below: B C 2 3 Balance Sheet 4 Cash 3 Accounts Receivable, Net 2016 2015 $ 185,000 $ 143,000 80,000 59,000 6 Inventory 7 Prepaid Insurance 104,000 134,000 11,900 5,880 8 Total Current Assets 380,900 341,880 9 Property and Equipment, Net 514,500 407,000 10 Total Assets S 895,400 $ 748,880 14 11 12 Current Liabilities 13 Long-term Liabilities Total Liabilities 15 Contributed Capital $ 85,300 $ 96,800 284,000 224,000 369,300 320,800 299,000 299,000 16 Retained Earnings 227,100 129,080 17 Total Stockholders' Equity 526,100 428,080 18 Total Liabilities and Stockholders' Equity S 895,400 $ 748,880 19 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income $ 3,031,000 1,949,000 1,082,000 891,400 190,600 14.500 176,100 47,000 129,100 D E 30 31 Required: 32 Compute the following liquidity ratios for 2016. Round to the 33 required number of decimal places USING THE EXCEL. 34 ROUND FUNCTION (fx). 35 36 37 Current ratio (rounded to one decimal place) Receivables turnover (rounded to two decimal places) Days to collect (rounded to the nearest whole day) 38 Inventory turnover (rounded to two decimal places) 39 40 Days' sales in inventory (rounded to the nearest day) 41 Compute the following Solvency Ratios for 2016. Again, USE 42 THE EXCEL ROUND FUNCTION (fx). to 1 times days times days 43 Debt to assets (rounded to two decimal places) 44 Times interest earned (rounded to one decimal place) 45 46 Compute the following Profitability Ratios for 2016. Again, USE 47 THE EXCEL ROUND FUNCTION (fx). 48 Profit margin ratio (rounded to one decimal place) 49 Gross margin ratio (rounded to one decimal place) to 1 times percent percent