Find Ratios Using Provided Information

Prepare the following Ratios for January 2020 and include formula and calculation: 1. Current Ratio 2. Acid-Test Ratio 3. Working Capital 4. Days' sales in inventory 5. Day's sales uncollected 6. Debt Ratio 7. Equity Ratio 8. Debt-to-equity 9. Profit Margin Ratio 10. Gross Margin Ratio Be Prepared Adjusted Trial Balance January 31, 2020 Credits $ Debits 687,490.00 5 23,000.00 450.00 60.00 10,000.00 5,190.00 10,000.00 300.00 2,800.00 414,250.00 400,000.00 45.750.00 90,000.00 125,000.00 69,300.00 Account ID Account Description 1001 Cash 1021 Accounts Recevable 1022 Allowance for Doubtful Accounts 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid insurance 1401 Land 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipment 1451 Store Equipment 1452 Accum Dep: Store Equipment 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable Long Term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital in Excess of Par: Preffered 3111 Paid n Capital in Excess of Par Common 3121 Paid in Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns and Allowances 4101 Interest Revenue 5001 Cost of Goods Sold 5010 Insurance Expense - General 5012 Repairs Expense Office 5015 Depreciation Expense Building - General 5020 Depreciation Expense: Office Equipment 5025 Supplies Expense-Selling 5027 Utilities Expense Office 5030 Office Salaries Expense 17,500.00 15,800.00 25,000.00 7,500.00 4778.00 200,000.00 800,000.00 200,000.00 105,000.00 20,000.00 166 250.00 72,000.00 53.940.00 23,900.00 74,000.00 139,000.00 800.00 3,000.00 60.00 84,560.00 200.00 3,000.00 750.00 3,000.00 1,200.00 1,500.00 16,000.00 5035 Office Payroll Tax Expense 6005 Depreciation Experse: Store Equipment 6010 Amortization Expense Patents-General 6015 Sales Salaries Expense 6020 Sales Payrol Tax Expense 6022 Utilities Expense: Store 6025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense - Seling 7001 Interest Expense 1,200.00 800.00 700.00 10,000.00 800.00 1,100.00 2,000.00 800.00 460.00 5,878.00 2,073,038.00 2.073,038.00 Be Prepared Balance Sheet December 31, 2019 25,000 7,500 200,000 232,500 Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accum Deo: Building Office Equipment Accum Deo Office Equipment Store Equipment Accum Dep: Store Equipment Patents Total Assets Labilities 27.500 Accounts Payable 40,000 Income Taxes Payable 50,000 Mortgage Payable 1.500 Total Liabilities 3,000 64.250 400,000 Stockholders' Equity 145.000) Preferred Stock 90,000 Common Stock (25,000 Paid in Capital in Excess of Par: Proffered 75,000 Paid in Capital in Excess of Par:Common (15,000 Retained Esnings 70.000 Total Stockholders' Equity 746.250 250,000 100,000 7,500 71,250 85,000 513,750 746,250 $ $ 139,000 800 3,000 3,800 135,200 60 84,560 50,700 Be Prepared Income Statement January 31, 2020 Sales Sales Revenue Less Sales discounts s Sales returns and allowances Net Sales Interest Revenue Cost of goods sold Gross Profit Expenses Insurance Expense General Repairs Expense: Office Depreciation Expense Building - General Depreciation Expense Office Equipment Supplies Expense-Selling Utilities Expense: Office Office Salaries Expense Office Payroll Tax Expense Depreciation Experse Store Equipment Amortization Expense: Patents - General Sales Salaries Expense Sales Payroll Tax Expense Utilities Expense Store Delivery Expense - General Repairs Expense Store Bad Debts Expense-Selling Interest Expense Total Expenses Net Income 200.00 3,000.00 750.00 3,000.00 1,200.00 1,500.00 16,000.00 1,200.00 800.00 700.00 10,000.00 800.00 1,100.00 2,000.00 800.00 460.00 5,878.00 49,388.00 1,312.00 Beginning Retained Earnings Add: Net Income Statement of Retained Earnings 85,000 1,312 86,312 31,060 55,252 Less Dividends Ending Retained Earnings Compative Balance Sheet 2020 2019 Difference Change Assets Current Assets Cash Accounts Receivable, Net (923000 - 5450) Merchandise inventory Store supplies Office Supplies Prepaid Insurance Interest Receivable Notes Receivable Total Current Assets 687,490 22 540 5,190 10,000 300 2,800 60 10,000 738.381 27,500 40,000 50,000 0 1,500 3,000 0 0 122.000 659,990 (17,460) (44,810) 10,000 (1,200) (200) 60 10,000 616.380 96% -77% -863% 100% 400% -7% 100% 100% 83% Non-Current Assets Land Building, Net ($400000 - 545750) Office Equipment, Net ($90000 - 517500) Store Equipment, Net ($125000-$15800) Total Non Current Assets 414,250.00 354250 72500 109200 950,200 54,250 355000 75,000 60000 554 250 350,000 (750) (2,500) 49,200 395,950 84% 0% -3% 45% 42% Intangible Assets Patents 69 300 70,000 (700) -1% 1,757,880 746,250 1,011,630 58% Total Assets Liabilities and Shareholders Equity Liabilities 0% 25,000 7,500 0% 25 000 7,500 4,778 37278 0 0 4,778 4778 100% 13% 32500 Current Liabilities Accounts Payable Income Tax Payable Interest Payable Total Current Liabilities Non-Current Liabilities Mortgage Payable Notes Payable Longterm Bonds Payable Less: Discount on Bonds Payable Total Non-Current Liabilities Total Liabilities 0 200,000 800,000 23 900 976,100 1013378 200,000 0 0 0 200000 232500 (200,000) 200,000 800,000 23,900 776100 780878 100% 100% 100% 80% 77% Shareholders Equity Preferred Stock Common Stock Paid n Capital in Excess of Par-Preferred inc Paid n Capital in Excess of Par-Common Paid in Capital-Treasury Stock Retained Earnings Less: Treasury Stock Total Shareholders Equity Total Liabilities and Shareholders Equity 400,000 105,000 20.000 166,250 72,000 53,940 250,000 100,000 7,500 71,250 0 85,000 150,000 5,000 12,500 95,000 72,000 31,060) 38% 5% 63% 57% 100% -58% 74.000 743190 1756568 0 513750 746250 74,000 100% 229440 0.30872321 1010318 0.57516589 Be Prepared Inc. Common-Size Comparative Balance Sheet Common Size Percent Current Yt Prior Yt Current Yr Prior Yr Assets Current Assets Cash Account Receivable (net) Merchandisde Inventory Office Supplies Prepaid Insurance Interest Receivable Notes Receivable Store Supplies Non Current Assets Land Building Office Equipment Store Equipment Patent Total Assets 687,490 22,540 5,190 300 2,800 60 10,000 10,000 27500 40,000 50 000 1,500 3,000 39% 15 0% 0% 0% 0% 1% 1% 596 7% 0% 0% 0% 0% 0% OOO 24% 20% 414,250 354,250 72,500 109,200 69,300 1.757 880 84 250 355,000 75 000 60,000 70,000 746,250 99 48% 10% 896 9% 100% 6% 49 100% 15 25,000 7,500 4,778 25.000 7,500 0 0% 3% 1% 0% 0% Liabilities & Shareholders Equity Current Liabilities Accounts Payable Income Tax Payable Interest Payable Stockholders Equity Preferred Stock Common Stock Padin Capital in Excess (Preferred Paid in Capital in Excess (Common) Retained Earnings Paid in Capital Treasury Stock Treasury Stock 23% 6% 15 34% 13% 400,000 105,000 20,000 166,250 55,252 72,000 -74,000 250,000 100,000 7,500 71 250 85.000 0 0 99 3% 4 10% 115 0% 0 0% 200,000 0 0% 11% Non Current Liabilities Mortgage Payable 0 Notes Payable Long Term 200,000 Bonds Payable, Net 776,100 Total Liabilities and Stockholders Equity 1.757,880 27% os 0% O 746,250 100% 100% 1,312 750 3,000 800 700 Be Prepared Statement of Cash Flows For Month of January 2020 Cash Flows From Operating Activities Net Income Adjustments to Net Income Add: Depreciation Expenses Building General Office Equipment Store Equipment Amortisation Expensas - Patent - General Increase/Decrease in Current Assets Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Expenses Interest Receivable Notes Receivable Increase/Decrease in Current Liabilities Interest Payable Net Cash provided by Operating Activities Cash Flows From Investing Activities Purchase of Land Purchase of store equipment Net Cash used in Investing Activities Cash Flows From Financing Activities Proceeds from issue of bonds (800,000-23,900) Repayment of Mortgage Payable Repurchase of Common Stock (20,000 shares 59 Proceeds of Re-Issue of Treasury shares (9125- $20) Proceeds from issue of Preferred Stock Payment of Cash Dividends Net cash from Financing Activities Net Increase/Decrease in Cash Add: Opening Cash Balance Closing Cash Balance 17,460 44,810 (10,000) 1,200 200 (60) (10,000) 4,778 54,950 -50,000 -50,000 -100,000 776,100 -200,000 -180,000 182,500 157,500 -31,060 705,040 659,990 27,500 632,490 $