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I need the required information of the two years Financial Statements Analysis Below are the two most recent balance sheets and most recent income statement
I need the required information of the two years
Financial Statements Analysis Below are the two most recent balance sheets and most recent income statement for Orca Industries. The company has an effective tax rate of 21%. Balance Sheet 2020 2019 Assets: Cash $10,000 $6,000 Accounts Receivable (net) 6,000 1,500 Inventory 8,000 10,000 Long-lived assets 12.000 11,000 (4.000) (2.000) Less: Accumulated depreciation Total assets $32.000 $26.500 Liabilities and Stockholders' Equity: Accounts payable $ 5,000 $6,000 1,000 Deferred revenues 2,000 Long-term note payable 10.000 10,000 Less: Discount on note payable (800) (1,000) Common stock 12,000 6,000 Retained earnings 4.800 3.500 Total liabilities and stockholders' equity $32.000 $26.500 Income Statement For the year ended December 31, 2020 Revenues $42,000 Cost of goods sold (24,000) Depreciation expense (2,000) Interest expense (3.000) Bad debt expense (2.000) Other expense (including income taxes) (9.000) Net income $ 2.000 Calculate the following ratios and explain what they mean to the company. 1. Current ratio 2. Quick ratio 3. A/R turnover 4. Collection ratio 5. Inventory turnover 6. Average number of days inventory is in stock 7. debt-to-equity ratio 8. Profit margin 9. Asset turnover 10. Return on assets Step by Step Solution
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