FACW3 V3 Name Insert Draw Page Layout Formulas Data Review View B C D E F Companies, a home improvement store chain, reported the following summarized figures: H DAVIS CONSULTING, INC. Income Statement Years Ended December 31, 2020 and 2019 2020 Net Sales $ 460 000 S Cost of Goods Sold 239 000 $ Gross Profit 221000 Operating Expenses 138 000 Income From Opetations 83 000 Interest Expense 13 000 income Before Income Tax $ 70 000 $ Income Tax Expense $ 19 000 $ Net Income 51 000 2019 422 000 212 000 210000 136 000 74 000 16 000 58 000 21 000 37 000 DAVIS CONSULTING, INC. Balance Sheet December 31, 2020 and 2019 2020 2019 Labilities 91000 88 000 Total Current Liabilities Long-term Liabilities 113 000 121000 Total Llabilities 144 000 158 ODD 16 000 3000 Stockholders' Equity 354 000 370 000 Preffered Stock, 3% 227 000 176000 Common Stockholders Equity 581 000 546000 Total Liabilities an Equity 2020 227.000 117000 344000 Assets Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Property. Plant and Equipment, Net Total Assets 2019 240 000 96000 336 000 92 000 145 000 581 000 92000 118000 546 000 DAVIS CONSULTING's has 50,000 common shares outstanding during 2020 Evaluating current ratio Requirements 1. Compute Companies current ratio at May 31, 2020 2. bid Companies current to improve, deteriorate of bone 20202 Computing inventory, gross profit, and receivables ratios 3. Combute the involvuvet sales in inventory Andrus percentage for Companies for 2020 2 + DAVIS CONSULTING's has 50,000 common shares outstanding during 2020. Evaluating current ratio Requirements 1. Compute Companies' current ratio at May 31, 2020. 2. Did Companies' current ratio improve, deteriorate, or hold steady during 2020? Computing inventory, gross profit, and receivables ratios 3. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Companies for 2020. 4. Compute days sales in receivables during 2020. Round dollar amounts to three decimal places. Assume all sales were on account. 5. What do these ratios say about Companies' ability to sell inventory and collect receivables? Measuring ability to pay liabilities 6. Compute the debt ratio and the debt to equity ratio at May 31, 2020 for Companies 7. Is ability to pay its liabilities strong or weak? Explain your reasoning Measuring profitability 8. Compute the profit margin ratio for Companies for 2020. 9. Compute the rate of return on total assets for 2020 10. Compute the asset turnover ratio for 2020. 11. Compute the rate of return on common stockholders' equity for 2020 12. Are these rates of return strong or weak? Explain your reasoning Computing EPS and P/Eratio 13. Compute earnings per share (EPS) for 2020 for. Round to the nearest cent. 14. Compute Companies price/earnings ratio for 2020. The market price per share of stockis 568.50 15. What do these results mean when evaluating Companies' profitability? 5 56 67 Test You Knowledao + 2 FACW3 V3 Name Insert Draw Page Layout Formulas Data Review View B C D E F Companies, a home improvement store chain, reported the following summarized figures: H DAVIS CONSULTING, INC. Income Statement Years Ended December 31, 2020 and 2019 2020 Net Sales $ 460 000 S Cost of Goods Sold 239 000 $ Gross Profit 221000 Operating Expenses 138 000 Income From Opetations 83 000 Interest Expense 13 000 income Before Income Tax $ 70 000 $ Income Tax Expense $ 19 000 $ Net Income 51 000 2019 422 000 212 000 210000 136 000 74 000 16 000 58 000 21 000 37 000 DAVIS CONSULTING, INC. Balance Sheet December 31, 2020 and 2019 2020 2019 Labilities 91000 88 000 Total Current Liabilities Long-term Liabilities 113 000 121000 Total Llabilities 144 000 158 ODD 16 000 3000 Stockholders' Equity 354 000 370 000 Preffered Stock, 3% 227 000 176000 Common Stockholders Equity 581 000 546000 Total Liabilities an Equity 2020 227.000 117000 344000 Assets Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Property. Plant and Equipment, Net Total Assets 2019 240 000 96000 336 000 92 000 145 000 581 000 92000 118000 546 000 DAVIS CONSULTING's has 50,000 common shares outstanding during 2020 Evaluating current ratio Requirements 1. Compute Companies current ratio at May 31, 2020 2. bid Companies current to improve, deteriorate of bone 20202 Computing inventory, gross profit, and receivables ratios 3. Combute the involvuvet sales in inventory Andrus percentage for Companies for 2020 2 + DAVIS CONSULTING's has 50,000 common shares outstanding during 2020. Evaluating current ratio Requirements 1. Compute Companies' current ratio at May 31, 2020. 2. Did Companies' current ratio improve, deteriorate, or hold steady during 2020? Computing inventory, gross profit, and receivables ratios 3. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Companies for 2020. 4. Compute days sales in receivables during 2020. Round dollar amounts to three decimal places. Assume all sales were on account. 5. What do these ratios say about Companies' ability to sell inventory and collect receivables? Measuring ability to pay liabilities 6. Compute the debt ratio and the debt to equity ratio at May 31, 2020 for Companies 7. Is ability to pay its liabilities strong or weak? Explain your reasoning Measuring profitability 8. Compute the profit margin ratio for Companies for 2020. 9. Compute the rate of return on total assets for 2020 10. Compute the asset turnover ratio for 2020. 11. Compute the rate of return on common stockholders' equity for 2020 12. Are these rates of return strong or weak? Explain your reasoning Computing EPS and P/Eratio 13. Compute earnings per share (EPS) for 2020 for. Round to the nearest cent. 14. Compute Companies price/earnings ratio for 2020. The market price per share of stockis 568.50 15. What do these results mean when evaluating Companies' profitability? 5 56 67 Test You Knowledao + 2