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Please I want the answer ASAP Question 1 Comparative data for ABC Company for the two-year period 2018-2019 are presented below. Income Statement Data 2018
Please I want the answer ASAP
Question 1 Comparative data for ABC Company for the two-year period 2018-2019 are presented below. Income Statement Data 2018 Net Sales $1,500,000 934.000 Cost of Goods Sold 2019 $1,200,000 741.000 $ 459,000 277 000 Gross Profit $ 566,000 Operating Expense Operating Income Other Expense interest) Earnings Before Income Tax 376.000 $ 190,000 15.000 182,000 12 000 $ 175,000 $ 170.000 Income Taxes 66.000 71.000 Net Income $ 109,000 $ 99,000 Balance Sheet Data Assets 2018 2019 Cash $ 30,000 $ 10,000 Receivables (net) 130.000 90,000 Inventory 170,000 113,000 650,000 547,000 Land, Buildings, and Equipment (net) Intangible Assets 20.000 20.000 $1.000.000 $780.000 Liabilities and Stockholders' Equity 2018 2019 Accounts Payable $ 100,000 Current Liabilities 50,000 300,000 100,000 $ 40,000 11,000 240,000 100,000 Bonds Payable Common Stock, S10 Par Additional Paid-in Capital Retained Earnings 51,000 51,000 399.000 338.000 $1.000.000 $780.000 The restricted cash is $ 10,000 in 2018 and $10,000 in 2019 to make a long term-investment. The allowances for doubtful accounts are $ 10,000 in 2018 and $ 20,000 in 2019 The capitalized interest $ 5,000 in 2018 and $5,000 in 2019. The operating lease in 2019 is $ 30,000, 1/3 is considered as interest. . The principal payments are every year $ 20,000. . Required: Compute for the 2019 the following ratios and interpret the financial situation of ABC Company 1 The times interest earned ratio (0.75 Mark) 2. The fixed charge ratio (0.75 Mark) 3. The accounts receivable turnover (1Mark) 4. The accounts receivable turnover in days (1 Mark) 5. The inventory turnover (1 Mark) 6. The inventory turnover in days (1 Mark) 7. The operating cycle (0.75 Mark) 8 The current ratio (1 Mark) 9. The Debt ratio (0.75 mark) 10. The debt to tangible net worth (1 Mark) Question 1 Comparative data for ABC Company for the two-year period 2018-2019 are presented below. Income Statement Data 2018 Net Sales $1,500,000 934.000 Cost of Goods Sold 2019 $1,200,000 741.000 $ 459,000 277 000 Gross Profit $ 566,000 Operating Expense Operating Income Other Expense interest) Earnings Before Income Tax 376.000 $ 190,000 15.000 182,000 12 000 $ 175,000 $ 170.000 Income Taxes 66.000 71.000 Net Income $ 109,000 $ 99,000 Balance Sheet Data Assets 2018 2019 Cash $ 30,000 $ 10,000 Receivables (net) 130.000 90,000 Inventory 170,000 113,000 650,000 547,000 Land, Buildings, and Equipment (net) Intangible Assets 20.000 20.000 $1.000.000 $780.000 Liabilities and Stockholders' Equity 2018 2019 Accounts Payable $ 100,000 Current Liabilities 50,000 300,000 100,000 $ 40,000 11,000 240,000 100,000 Bonds Payable Common Stock, S10 Par Additional Paid-in Capital Retained Earnings 51,000 51,000 399.000 338.000 $1.000.000 $780.000 The restricted cash is $ 10,000 in 2018 and $10,000 in 2019 to make a long term-investment. The allowances for doubtful accounts are $ 10,000 in 2018 and $ 20,000 in 2019 The capitalized interest $ 5,000 in 2018 and $5,000 in 2019. The operating lease in 2019 is $ 30,000, 1/3 is considered as interest. . The principal payments are every year $ 20,000. . Required: Compute for the 2019 the following ratios and interpret the financial situation of ABC Company 1 The times interest earned ratio (0.75 Mark) 2. The fixed charge ratio (0.75 Mark) 3. The accounts receivable turnover (1Mark) 4. The accounts receivable turnover in days (1 Mark) 5. The inventory turnover (1 Mark) 6. The inventory turnover in days (1 Mark) 7. The operating cycle (0.75 Mark) 8 The current ratio (1 Mark) 9. The Debt ratio (0.75 mark) 10. The debt to tangible net worth (1 Mark) Step by Step Solution
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