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Please help me figure out the ratios in the page below. 1 Calculate the following two financial ratios for Smith Heating and Electric and comment
Please help me figure out the ratios in the page below.
1 Calculate the following two financial ratios for Smith Heating and Electric and comment on what the value of the ratios mean for the company. 2 Your calculations should be based on December 31, 2019 balances. \begin{tabular}{|c|} \hline 1 \\ 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline 6 \\ \hline 7 \\ \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline 11 \\ \hline 12 \\ \hline 13 \\ \hline 14 \\ \hline 15 \\ \hline 16 \\ \hline 17 \\ \hline 18 \\ \hline 19 \\ \hline 20 \\ 21 \\ \hline 22 \\ \hline 23 \\ \hline 24 \\ \hline 25 \\ 26 \\ \hline 27 \\ \hline 28 \\ 29 \\ \hline 30 \\ \hline 31 \\ 32 \\ \hline 33 \\ \hline 34 \\ \hline 35 \end{tabular} \begin{tabular}{|l|c|c|} \hline \multicolumn{3}{|c|}{ Smith Heating and Electric } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline \multicolumn{2}{|c|}{ December 31st 2019} \\ \hline \multicolumn{2}{|c|}{} \\ \hline Revenue & Amount & \\ \hline Revenue From Sales & 91,625.00 & \\ \hline Revenue From Service & 136,840.00 & \\ \hline Total Revenue & & \\ \hline & & 228,465.00 \\ \hline Expenses & & \\ \hline Purchases & & \\ \hline Less Returns & 115,785.00 & \\ \hline Less Purchase Discounts & 620 & \\ \hline Net Purchases & 1,460.00 & \\ \hline Freight In & 113,705.00 & \\ \hline Advertising & 998.5 & \\ \hline Automobile Expense & 420 & \\ \hline Amort.Expense - Shop Equipment & 7,340.00 & \\ \hline Amort.Expense - Automobile & 315 & \\ \hline Insurance & 1,090.00 & \\ \hline Maintence Expense & 1,128 & \\ \hline Miscellaneous Expenses & 325 & \\ \hline Rent & 690.5 & \\ \hline Installation Inventory & 8,800.00 & \\ \hline Supplies & 19,200.00 & \\ \hline Utilities & 200 & \\ \hline Interest Expense & 1,925.00 & \\ \hline Total Expenses & 5,615.00 & \\ \hline & & \\ \hline Net Profit & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}
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