Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LMN Plc's Financial Overview as of 30 September 2023: Balance Sheet: Cash: $100,000 Accounts Receivable: $700,000 Inventory: $500,000 Total Current Assets: $1,300,000 Property, Plant, and
LMN Plc's Financial Overview as of 30 September 2023:
- Balance Sheet:
- Cash: $100,000
- Accounts Receivable: $700,000
- Inventory: $500,000
- Total Current Assets: $1,300,000
- Property, Plant, and Equipment: $2,700,000
- Total Assets: $4,000,000
- Liabilities and Equity:
- Current Liabilities: $1,000,000
- Long-term Debt: $1,500,000
- Total Liabilities: $2,500,000
- Equity: $1,500,000
- Total Liabilities and Equity: $4,000,000
Income Statement for the Nine Months Ended 30 September 2023:
- Sales: $3,600,000
- Cost of Goods Sold: $2,200,000
- Gross Profit: $1,400,000
- Operating Expenses: $600,000
- Operating Profit: $800,000
- Interest Expense: $100,000
- Net Profit Before Tax: $700,000
- Tax @ 28%: $196,000
- Net Profit: $504,000
Requirements:
- Calculate the current ratio.
- Determine the debt-to-equity ratio.
- Evaluate the gross profit margin.
- Compute the return on equity (ROE).
- Assess the interest coverage ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started