Question
. Following table shows financial information of ABC Corp. ( Numbers are in thousands ) Item Year 2020 Year 2019 Net sales $2,350.00 $2,219.00 Cost
. Following table shows financial information of ABC Corp.
(Numbers are in thousands)
| Item | Year 2020 | Year 2019 |
| Net sales | $2,350.00 | $2,219.00 |
| Cost of goods sold | $1,958.00 | $2,010.00 |
| Total assets | $1,850.00 | $2,190.00 |
| Current assets | $1,500.00 | $1,800.00 |
| Total liabilities | $1,152.00 | $1,087.00 |
| Current liabilities | $950.00 | $980.00 |
| Total stockholders' equity | $550.00 | $820.00 |
| Gross profit | $400.00 | $160.00 |
| Capital expenditures | $250.00 | $237.00 |
| Net cash provided by operating activities | $157.00 | $189.00 |
| Net income | $87.00 | $90.00 |
| Cash dividends | $0.00 | $123.00 |
(a) Based on information above, calculate the ratios in the following table -
| Ratio | Year 2020 | Year 2019 |
| Current ratio |
|
|
| Debt to assets ratio |
|
|
| Free cash flow |
|
|
| Profit margin |
|
|
| Gross profit rate |
|
|
| Following ratios or amounts to be calculated only for the year of 2020 | ||
|
| Year 2020 | |
| Average stockholders' equity |
| |
| Average total assets |
| |
| ROE |
| |
| ROA |
| |
| Asset turnover |
| |
b) Based on ratios calculated in the above table, interpret the following ratios only for the year of 2020 -
- Current ratio:
- Debt to assets ratio:
- Profit margin:
- Gross profit rate:
- ROE:
- ROA:
- Asset turnover:
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
1260247821, 978-1260247824
