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please see both the picture. I want answer of number 6, marked in red Styles Ed Q No.1 The Balance Sheet and Income Statement Data
please see both the picture. I want answer of number 6, marked in red
Styles Ed Q No.1 The Balance Sheet and Income Statement Data for Galaxy Computer Co. is given below BALANCE SHEET Assets 2001 2000 Cash 7,282 9,000 D 48,600 Short term investment Acc. Receivable Inventories 632,160 351,200 1,287,360 715,200 Total current assets 1,926,802 1,124,000 Fixed Assets Plant & Equipment 1,202,950 491,000 Less: Acc dep 263,160 146,200 939,790 344,800 Total assets 2,866,592 1,468,800 Liabilities & Equities Current liability Alc Payable 524,160 145,600 720,000 200,000 Notes payable Accruals 489,600 136,000 total Current liability 1,733,760 481,600 Long-term debt 1,000,000 323,432 Common Stock 460,000 460,000 Total cquities 2,866,592 1,468,800 Income Statement Sales 5,834,400 3,432,000 2,864,000 Cost of Goods Sold 5,728.000 Other expense 680,000 340,000 dep 116,960 18,900 EBIT/ LOSS -690,560 209,100 Interest expense 176.000 62,500 EBT LOSS -866.560 146,600 tax -346624 58640 net incomc/loss -519,936 87,960 Required: a) Compute at least two ratios in cach arca (numbered 1 to 6 below) for both years. (Note: Do not lake average of two years to calculate any formula, work on individual ycar figure for all calculation. For example, do not take average inventory or average receivable) (3 Marks) 1. Liquidity 2. Profitability 3. Leverage 4. Elficiency ratio/Asset Activity Coverage ratio 6. Market ratio b) Based on your calculations in parla, interpret and give your comments about the company's liquidity, profitability, and solvency (2 Marks)Step by Step Solution
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