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Games Galore has provided its condensed financial statements for the year ended December 31, Year 3. The Controller has asked you to calculate liquidity, solvency,

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Games Galore has provided its condensed financial statements for the year ended December 31, Year 3. The Controller has asked you to calculate liquidity, solvency, and profitability ratios that management can use in decision making Use the information included in the Excel Simulation and the Excel functions described below to complete the task Cell Reference: Allows you to refer to data from another cell in the worksheet. In the Excel Simulation below, it-89" is entered in a blank cell, the formula outputs the result from cell B9, which is $514,500 in this example Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys + (plus sign to add). - (minus sign to subtract). (astensk sign to multiply), and/(forward slash to divide). In the Excel Simulation below on the Balance Sheet tab, if "=C15 C16" is entered in a blank cell, the formula adds the values from those cells and outputs the result, which is 428,080 in this example. If using the other math symbols the result is an appropriate answer for the function ROUND function: Allows you to round a number or result of a formula calculation to a specific number of digits. The syntax of the ROUND function is --ROUND(numbernum digits and returns the result of your formula rounded to a particular number of digits. The number argument can be a cell reference to a number or a formula itself that results in a number. The num_digits argument is the number of digits you want to round. The num_choits value rounds using basic mathematical rounding rules, so anything below 5 rounds down and anything 5 and above rounds up. Also, the num digits value should be a positive value to round to any number of decimal places, while a negative value rounds to the left of the decimal place, and a zero rounds to the nearest whole number if the value 1253.5693 is entered in cell A1 it can be used in the ROUND function as the number reference in this example, if the value in cell Al should be rounded to 2 decimal places, enter"-ROUND(A1,2)" in a blank cell The formula will output 125357 If the number in cell A1 should be rounded to the nearest hundred place, enter -ROUND(A1-2) in a blank cell and the formula will output 1300 1 Condensed financial statements for Games Galore are summarized below: 2 $ Year 3 185,000 $ 80,000 104,000 11,900 380,900 514,500 895,400 S Year 2 143,000 59,000 134,000 5,880 341,880 407,000 748,880 $ 3 Balance Sheet 4 Cash 5 Accounts Receivable, Net 6 Inventory 7 Prepaid Insurance Total Current Assets 9 Property and Equipment, Net 10 Total Assets 11 12 Current Liabilities 13 Long-term Liabilities 14 Total Liabilities 15 Contributed Capital 16 Retained Earnings 17 Total Stockholders' Equity 18 Total Liabilities and Stockholders' Equity 19 $ 85,300 $ 284,000 369,300 299,000 227,100 526,100 895,400 $ 96,800 224,000 320,800 299,000 129,080 428,080 748,880 $ $ 3,031,000 1,949,000 1,082,000 891,400 190,600 14,500 176,100 47,000 $ 129,100 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income 30 31 Required: 32 Compute the following liquidity ratios for Year 3. Round to the 33 required number of decimal places USING THE EXCEL. 34 ROUND FUNCTION (Ex). 35 Current ratio (rounded to one decimal place) 36 Receivables turnover (rounded to two decimal places) 37 Days to collect (rounded to the nearest whole day) 38 Inventory turnover (rounded to two decimal places) 39 Days to sell (rounded to the nearest whole day) 40 to 1 times days times days 41 Compute the following Solvency Ratios for Year 3. Again, USE 42 THE EXCEL ROUND FUNCTION (Ex). Debt to assets (rounded to two decimal places) Times interest earned (rounded to one decimal place) 43 44 to 1 times 46 Compute the following Profitability Ratios for Year 3. Again, USE 47 THE EXCEL ROUND FUNCTION (1x). 48 Net profit margin (rounded to one decimal place) 49 Gross profit percentage (rounded to one decimal place) 50 percent percent

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