(Liquidity and profitability analysis) Cathy's Cuisine Ltd. is a small restaurant and catering business started three years ago by Cathy Crosby. Initially the company's operations consisted of a small diner. In 2019, the company added the catering services as a way to expand sales without having to add space for seats. As the catering side of the business grew in 2020, the company purchased a used vehicle for deliveries. All sales in the diner are cash, debit, or credit card, but for catering jobs, customers are invoiced after the event. Most of the company's suppliers offer terms of 30 days. Selected fiancial information for Cathy's Cuisine Ltd. follows. 2020 2019 Assets Cash $9.190 $3,090 Accounts receivable 15 220 9.390 Inventory 9.890 5,800 Land 13.970 13,970 Building and equipment 32.140 26.540 Total asset $80,410 $58.790 HE Liabilities and equity Accounts payable $9.970 $7.820 Accounts receivable 15,220 9,390 Inventory 9,890 5,800 Land 13,970 13,970 Building and equipment 32,140 26,540 Total assets $80,410 $58,790 Liabilities and equity Accounts payable $9,970 $7,820 Short-term note payable 1,820 O Mortgage payable current 2,320 2,320 Mortgage payable 20,880 23,200 Share capital 12,000 12,000 Retained earnings 33,420 13,450 Total liabilities and equity $80,410 $58,790 Other information ELO Sales $189.240 $143.110 Cost of goods sold 72.840 80.190 Question 18 of 19 $9,970 $7,820 Accounts payable 1,820 0 Short-term note payable Mortgage payable current 2,320 2,320 Mortgage payable 20.880 23,200 Share capital 12.000 12,000 Retained earnings 33.420 13,450 Total liabilities and equity $80,410 $58,790 Other information Sales $189.240 $143,110 Cost of goods sold 72,840 80,190 rd gn Net income 19,970 5,960 Assume the grow non Assume the growth in sales in 2020 is primarily from the catering business. Calculate the gross margins and the profit margin (Round answers to 1 decimal place, e.g. 15.1%) 2020 2019 61 % 44 % Gross margin 11 4 Pront margin % %8 Calculate the company's current ratio and quick ratio for both years. (Round answers to 2 decimal places, es. 1.84.) 2020 2019 Current ratio 24 times 1.8 times Quick ratio 17 times 12 times Calculate the company's accounts receivable turnover ratio for 2020. How quickly is the company collecting its receivables? (Round answers to 1 decimal place, e.g. 18.4.) 2020 12.4 times Accounts receivable turnover 29 Average collection period days Assume that 50% of the sales come from the catering business and recalculate the accounts receivable turnover for 2020. Assume that 50% of the sales come from the catering business and recalculate the accounts receivable turnover for 2020. (Round answers to 1 decimal place, e.g. 18.4.) 2020 7.7 times Accounts receivable - catering turnover Average collection period days Calculate the company's inventory turnover ratio for 2020. (Round answers to 1 decimal place e.g. 18.4.) 2020 times Inventory turnover Calculate the company's accounts payable turnover ratio for 2020. (Round answers to 1 decimal place, e.g. 18.4.) 2020 Accounts payable turnover times Save for later Last saved 27 minutes ago Saved work will be auto submitted on the due date Auto- Attempts: 0 of 1 used Submit