Question
IF you know the following items -2019 Items Amount Cash 200,000 Inventory 1,000,000 Account Receivables 1,800,000 Sales 3,000,000 Account Payables 1,000,000 Total equity 2,000,000 Net
IF you know the following items -2019
Items
| Amount |
Cash | 200,000 |
Inventory | 1,000,000 |
Account Receivables | 1,800,000 |
Sales | 3,000,000 |
Account Payables | 1,000,000 |
Total equity | 2,000,000 |
Net income | 100,0 |
The required: Calculate the following ratios for 2019: (The formula, your calculation steps, final answer are required)
1- ROA, Current ratio, Quick ratio, the gross profit margin for 2019.
2- If we assume the ROA in 2018 is 0.5. Compare between ROA in 2018 and 2019? Which one is better? And why?
3- 1- If we assume the Current ratio in 2018 is 1.5. Compare between Current ratio in 2018 and 2019? Which one is better? And why?
4- If we assume the gross profit margin ratio in 2018 is 0.6 Compare between gross profit margin in 2018 and 2019? Which one is better? And why
5- As financial manager : evaluate the financial position and financial performance ( based on your answers in Q2, 3, and 4) . (5 lines)
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