Question
FOR 2020 find the following. Please show work, so that I can complete the prior years ratios. 1). Current Ratio 2). Debt Ratio 3). Profit
FOR 2020 find the following. Please show work, so that I can complete the prior years 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 analysis of the company.
INCOME STATEMENTBALANCE 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% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
M: Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260772357, 9781260772357
