Question
PQR Ltd. presents the following financial information for the year ending 31-12-2020: Assets: Cash: $2,40,000 Accounts Receivable: $5,60,000 Inventory: $8,50,000 Prepaid Expenses: $40,000 Short-term Investments:
PQR Ltd. presents the following financial information for the year ending 31-12-2020:
Assets:
Cash: $2,40,000
Accounts Receivable: $5,60,000
Inventory: $8,50,000
Prepaid Expenses: $40,000
Short-term Investments: $4,50,000
Liabilities and Equity:
Accounts Payable: $5,20,000
Short-term Loans: $2,80,000
Long-term Debt: $7,00,000
Common Stock: $11,00,000
Retained Earnings: $6,20,000
Income Statement for the year ending 31-12-2020:
Sales: $52,00,000
Cost of Goods Sold: $32,00,000
Operating Expenses: $8,00,000
Interest Expense: $1,60,000
Tax Rate: 30%
Requirements:
Calculate the current ratio.
Calculate the debt to equity ratio.
Calculate the return on assets.
Calculate the net profit margin.
Calculate the inventory turnover ratio.
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