Question
FOR 2020 find the following. Please show work, so that can complete the prior year's ratios. 1). Current Ratio 2). Debt Ratio 3). Profit Margin
FOR 2020 find the following. Please show work, so that can complete the prior year's ratios.
1). Current Ratio
2). Debt Ratio
3). Profit Margin
4). Return on Total Assets
A brief comment for each on what they represent as an analysis of the company.
INCOME STATEMENT BALANCE SHEET
| Period Ending: | 1/31/2020 | 1/31/2019 | 1/31/2018 | 1/31/2017 |
|---|---|---|---|---|
| Total Revenue | $2,358,926 | $1,803,010 | $1,309,132 | $943,564 |
| Cost of Revenue | $429,788 | $344,676 | $256,409 | $191,053 |
| Gross Profit | $1,929,138 | $1,458,334 | $1,052,723 | $752,511 |
| Operating Expenses | ||||
| Research and Development | $619,800 | $441,969 | $301,114 | $295,850 |
| Sales, General and Admin. | $1,596,475 | $1,267,538 | $937,019 | $792,763 |
| Non-Recurring Items | $0 | $0 | $0 | $0 |
| Other Operating Items | $0 | $0 | $0 | $0 |
| Operating Income | -$287,137 | -$251,173 | -$185,410 | -$336,102 |
| Add'l income/expense items | $51,735 | $29,945 | $5,343 | $2,698 |
| Earnings Before Interest and Tax | -$235,402 | -$221,228 | -$180,067 | -$333,404 |
| Interest Expense | $96,249 | $41,963 | $8,794 | $8,549 |
| Earnings Before Tax | -$331,651 | -$263,191 | -$188,861 | -$341,953 |
| Income Tax | $5,017 | $12,386 | $1,357 | $5,507 |
| Minority Interest | $0 | $0 | $0 | $0 |
| Equity Earnings/Loss Unconsolidated Subsidiary | $0 | $0 | $0 | $0 |
| Net Income-Cont. Operations | -$336,668 | -$275,577 | -$190,218 | -$347,460 |
| Net Income | -$336,668 | -$275,577 | -$190,218 | -$347,460 |
| Net Income Applicable to Common Shareholders | -$336,668 | -$275,577 | -$190,218 | -$347,460 |
Balance Sheet
| Period Ending: | 1/31/2020 | 1/31/2019 | 1/31/2018 | 1/31/2017 |
|---|---|---|---|---|
| Current Assets | ||||
| Cash and Cash Equivalents | $778,653 | $1,876,165 | $545,947 | $421,346 |
| Short-Term Investments | $976,508 | $881,220 | $619,203 | $662,096 |
| Net Receivables | $838,743 | $469,658 | $396,413 | $238,281 |
| Inventory | $0 | $0 | $0 | $0 |
| Other Current Assets | $228,911 | $151,420 | $122,472 | $38,650 |
| Total Current Assets | $2,822,815 | $3,378,463 | $1,684,035 | $1,360,373 |
| Long-Term Assets | ||||
| Long-Term Investments | $504,304 | $266,059 | $5,375 | $5,000 |
| Fixed Assets | $424,014 | $158,276 | $160,880 | $166,395 |
| Goodwill | $1,292,840 | $503,388 | $161,382 | $124,642 |
| Intangible Assets | $238,415 | $91,622 | $48,142 | $37,713 |
| Other Assets | $68,093 | $37,669 | $41,711 | $24,423 |
| Deferred Asset Charges | $88,990 | $64,766 | $37,920 | $0 |
| Total Assets | $5,439,471 | $4,500,243 | $2,139,445 | $1,718,546 |
| Current Liabilities | ||||
| Accounts Payable | $482,919 | $372,120 | $241,036 | $188,666 |
| Short-Term Debt / Current Portion of Long-Term Debt | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $829,377 | $673,018 | $489,913 | $478,707 |
| Total Current Liabilities | $1,312,296 | $1,045,138 | $730,949 | $667,373 |
| Long-Term Debt | $1,714,630 | $1,634,474 | $0 | $0 |
| Other Liabilities | $236,284 | $95,245 | $98,383 | $99,260 |
| Deferred Liability Charges | $176,832 | $204,929 | $178,792 | $146,752 |
| Misc. Stocks | $0 | $0 | $0 | $0 |
| Minority Interest | $0 | $0 | $0 | $0 |
| Total Liabilities | $3,440,042 | $2,979,786 | $1,008,124 | $913,385 |
| Stock Holders Equity | ||||
| Common Stocks | $157 | $149 | $143 | $137 |
| Capital Surplus | -$1,561,471 | -$1,232,044 | -$955,871 | -$1,020,784 |
| Retained Earnings | $0 | $0 | $0 | $0 |
| Treasury Stock | $3,566,055 | $2,754,858 | $2,086,893 | $1,828,821 |
| Other Equity | -$5,312 | -$2,506 | $156 | -$3,013 |
| Total Equity | $1,999,429 | $1,520,457 | $1,131,321 | $805,161 |
| Total Liabilities & Equity | $5,439,471 | $4,500,243 | $2,139,445 | $1,718,546 |
| Liquidity Ratios | ||||
|---|---|---|---|---|
| Current Ratio | 215% | 323% | 230% | 204% |
| Quick Ratio | 215% | 323% | 230% | 204% |
| Cash Ratio | 134% | 264% | 159% | 162% |
| Profitability Ratios | ||||
| Gross Margin | 82% | 81% | 80% | 80% |
| Operating Margin | 0% | 0% | 0% | 0% |
| Pre-Tax Margin | 0% | 0% | 0% | 0% |
| Profit Margin | 0% | 0% | 0% | 0% |
| Pre-Tax ROE | 0% | 0% | 0% | 0% |
| After-Tax ROE | 0% | 0% | 0% | 0% |
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
