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Help please! Exercise 18-08 Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2020. Feb. 3 7 11 14 18
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Exercise 18-08 Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2020. Feb. 3 7 11 14 18 Collected accounts receivable of $15,200. Purchased equipment for $28,400 cash. Paid $2,000 for a 1-year insurance policy. Paid accounts payable of $12,500. Declared cash dividends, $4,000. Additional information: As of February 1, 2020, current assets were $135,810, and current liabilities were $50,300. Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.67.) Current ratio February 1 February 3 February 7 February 11 February 14 February 18 Exercise 18-10 Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 2020 $4,800 3,648 86 84 1,300 3,290 1,012 2019 $5,600 3,996 129 112 1,246 2,710 1,042 Compute the following ratios for 2020. (Round asset turnover to 2 decimal places, e.g. 1.67. Round all other answers to 1 decimal place, e.g. 1.6 or 1.6%.) (a) Profit margin (b) Asset turnover times Return on assets (d) Return on common stockholders' equity (e) Gross profit rateStep by Step Solution
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