Question
please answer the following questions using the attatched data: 1) What is the current ratio in 2020 and 2019? (1 pt) 2) Calculate the acid
1) What is the current ratio in 2020 and 2019? (1 pt)
2) Calculate the acid test ratios for both years. (1 pt)
3) Has Sanderson Farms become more or less liquid based on your evaluation of the current and acid test ratios? (1 pt)
4) What is the debt to equity ratio in 2020 and 2019? (1 pt)
5) Has Sanderson Farms become more or less solvent based on your evaluation of the debt to equity ratio? (1 pt)
6) What is the return on investment ratio in 2020 and 2019? (1 pt)
7) Based on the return on investment ratio, is Sanderson Farms using their assets more efficiently in 2020 than in 2019? (1 pt)
8) What is the return on owners' equity ratio in 2020 and 2019? (1 pt)
9) Based on the return on owners' equity ratio, are investors seeing a greater return in 2020 than 2019? (1 pt)
10) What is the profit as a percent of sales ratio in 2020 and 2019? (1 pt)
11) Has the profitability of Sanderson Farms improved over these two years? (1 pt)
12) Based on all of your calculations and analyses of the selected financial ratios, what is your opinion of the financial performance of Sanderson Farms in 2020 as compared to 2019? (4 pts)
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