Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given: S&S AIR, INC. 2022 Balance Sheet Assets Liabilities and Owner's Equity Current Assets Current liabilities Cash $ 530,037 Accounts Payable $ 1,039,168 Accounts Receivable

Given:

S&S AIR, INC. 2022 Balance Sheet
Assets Liabilities and Owner's Equity
Current Assets Current liabilities
Cash $ 530,037 Accounts Payable $ 1,039,168
Accounts Receivable $ 2,228,356 Notes Payable $ 2,100,173
Inventory $ 1,798,302 Total $ 3,139,341
Total $ 4,556,695 Long-term debt $ 5,570,000
Owners' equity
common stock $ 210,000
retained earnings $ 13,519,722
Fixed assets total $ 13,729,722
Net Plant and equip. $ 17,882,368 Total Liabilities and owners equity $ 22,439,063
Total Assets $ 22,439,063
S&S AIR, INC. 2022 Income Statement
Sales $ 29,151,760
Cost of goods sold $ 21,758,220
Other expenses $ 3,483,370
Depreciation $ 952,300
EBIT $ 2,957,870
Interest paid $ 528,170
taxable income $ 2,429,700
taxes (21%) $ 510,237
net income $ 1,919,463
dividends $ 297,660
addition to retained earnings $ 1,621,803

Are my calculations for the ratios correct?

Current Ratio 1
quick ratio 1
cash ratio 0.17
total asset turnover 1.30
inventory turnover 12.10
receivables turnover 13.08
total debt ratio 0.39
debt-equity ratio 0.39
Equity multiplier 1.00
times interest earned 5.60
cash coverage ratio 7.40
profit margin 7%
return on assets 9%
return on equity 9%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions