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(Liquidity and profitability analysis) Superior Kitchens and Bathrooms Ltd. is a small business that sells kitchen and bathroom fixtures and accessories and also does design

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(Liquidity and profitability analysis) Superior Kitchens and Bathrooms Ltd. is a small business that sells kitchen and bathroom fixtures and accessories and also does design and installation. The business was started three years ago by Qing Liu. Initially the company's operations consisted of kitchen and bathroom renovations for individual homes. In 2019, the company started providing design and installation services to local contractors to expand sales. As the contractor side of the business grew in 2020, the company purchased a truck for deliveries. All sales to individuals are cash on delivery, but for contracting jobs, customers are invoiced and are offered 30-day payment terms, The company's suppliers offer terms of 30 days. Selected financial information for Superior Kitchens and Bathrooms Ltd, follows. 2020 2019 Assets Cash $12,096 $4,588 Accounts receivable 19,584 13,172 Inventory 15,360 8,140 Land 21,000 21,000 Building and equipment 61,600 53,000 Total assets $129,640 $99,900 Liabilities and equity Liabilities and equity Accounts payable $13,500 $11,300 Short-term note payable 2,200 0 Mortgage payable current 3,500 3,500 Mortgage payable 31.500 35,000 Share capital 16,900 16,300 Retained earnings 62,040 33,800 Total liabilities and equity $129,640 $99,900 Other information Sales $261,000 $219,000 Cost of goods sold 151,119 116.946 Net income 28,240 9.600 Assume the growth in sales in 2020 is primarily from the contracting business. Calculate the gross margins and the profit margins. (Round answers to 1 decimal place, eg. 15.1%.) 2020 2019 % % Gross margin % Profit margin % eTextbook and Media Calculate the company's current ratio and quick ratio for both years. (Round answers to 2 decimal places, eg. 1.84.) 2020 2019 times times Current ratio Quick ratio times 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, eg. 18.4.) 2020 times Accounts receivable turnover days Average collection period e Textbook and Media Assume that 50% of the sales come from the contracting business and recalculate the accounts receivable turnover for 2020 (Round answers to 1 decimal place, e.g. 18.4.) 2020 times Accounts receivable-contracting turnover days Average collection period Calculate the company's inventory turnover ratio for 2020. (Round answers to 1 decimal place, eg. 18.4.) 2020 Inventory turnover times e Textbook and Media Calculate the company's accounts payable turnover ratio for 2020. (Round answers to 1 decimal place, eg. 18.4) 2020 Accounts payable turnover times

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