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I want all steps with analysis Given the balance sheet and income statement for Patchi Corporation, compute the ratios below that are also shown for
I want all steps with analysis
Given the balance sheet and income statement for Patchi Corporation, compute the ratios below that are also shown for the industry average. Indicate whether a particular ratio for Patchi Co. is better or wprse than the industry average. + Patchi Co. Balance Sheet Assets Cash Accts. Receivable Inventory Current Assets Net Fixed Assets Liabilities S 15,000 Accounts Payable 22,000 Notes Payable 30.000 Accrued Expenses 67.000 Current Liabilities 73.000 Long-term Debl Stockholders' Equity S140,000 Total Liabilities & Stockholders' Equity S 21,000 20,000 5.000 46,000 30,000 64,000 Total Assets $140,000 Income Statement $120,000 45.000 75,000 Sales Less: Cost of Goods Sold Gross Profit Selling and Administrative Expense Rent Expense (Lease) EBIT Interest Expense 1 cubbcollab.com is sharing your screen Laminn hafi 20,000 8.000 28.000 47.000 Stop sharing Hide United States) OR 03 MUSCIS Cash Accts. Receivable Inventory Current Assets Net Fixed Assets LIQUES S 15.000 Accounts Payable 22.000 Notes Payable 30.000 Accrued Expenses 67,000 Current Liabilities 73.000 Long-term Debt Stockholders' Equity $140.000 Total Liabilities & Stockholders' Equity S 21.000 20,000 5,000 46,000 30.000 64.000 Total Assets $140.000 Income Statement $120,000 45,000 75,000 20,000 8.000 Sales Less: Cost of foods Sold Gross Profit Selling and Administrative Expense Rent Expense (Lease) EBIT Interest Expense Earnings before taxes Taxes (@ 25%) Net Income 28.000 47,000 5,000 42.000 10.500 $ 31,500 Common shares outstanding EPS 15.000 $ 2.10 Ratios for Patchi Co. Ratio Industry Average Better (B) or Worse (W) Net profit margin Return on assets Return on equity Avg. receivable period Inventory turnover (use sales) Total asset turnover Current ratio Quick ratio Debt to total assets Interest coverage ratio 17.5% 20.8% 35% 50.0 days 3.5x .76x 1.28 .85 45 12.0x Step by Step Solution
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