Problem 1 J K Co Balance Sheet As of Dec 31 of years 2019 and 2020 2019 2020 Assets Cash Accounts Receivable Inventories Property, Plant and Equipment Accumulated Depreciation Total Assets $269,167 $19,210 $510,000 $2,975,000 $821,667 $2,951,710 $359,983 $30,756 $556,042 $2,975,000 $830, 167 $3,091,613 Liabilities Accounts Payable Accrued Taxes Bank Loan Total Liablities $382,500 $127,500 $0 $510,000 $435,491 $42,883 $0 $478,373 Stockholder's Equity Common Stock Retained Earnings Total Stockholders Equity $566,667 $1,875,044 $2,441,710 $566,667 $2,046,574 $2,613,240 Total Liabilities Equity $2,951,710 $3,091,613 J K Co Income Statement For the years ended on Dec 31 of 2019 and 2020 Sales ( ) COGS ( ) Variable S A Contribution Margin Total Fixed Admin Expenses Total Fixed Selling Expenses Operating Income ( ) Financial Expenses (5) Earnings before Tax ( ) Tax Expense ( ) Net Income $1,468,750 $897,917 $72,188 $498,646 $91,667 $91,667 $315,313 $0 $315,313 $63,063 $252,250 Calculate the following ratios a A P Days (estimate purchases for calculating this ratio) b Operating Cycle c Cash Cycle d Return on Assets (ROA) (Direct approach, not DuPont) e Return on Equity (ROE) (Direct approach, not Dupont)

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Problem 1 J K Co  Balance Sheet As of Dec 31 of years 2019 and 2020 2019 2020 Assets Cash Accounts Receivable Inventories Property, Plant and Equipment Accumulated Depreciation Total Assets $269,167 $19,210 $510,000 $2,975,000  $821,667 $2,951,710 $359,983 $30,756 $556,042 $2,975,000  $830, 167 $3,091,613 Liabilities Accounts Payable Accrued Taxes Bank Loan Total Liablities $382,500 $127,500 $0 $510,000 $435,491 $42,883 $0 $478,373 Stockholder's Equity Common Stock Retained Earnings Total Stockholders Equity $566,667 $1,875,044 $2,441,710 $566,667 $2,046,574 $2,613,240 Total Liabilities Equity $2,951,710 $3,091,613 J K Co  Income Statement For the years ended on Dec 31 of 2019 and 2020 Sales ( ) COGS ( ) Variable S A Contribution Margin Total Fixed Admin  Expenses Total Fixed Selling Expenses Operating Income ( ) Financial Expenses (5) Earnings before Tax ( ) Tax Expense ( ) Net Income $1,468,750 $897,917 $72,188 $498,646 $91,667 $91,667 $315,313 $0 $315,313 $63,063 $252,250 Calculate the following ratios  a  A P Days (estimate purchases for calculating this ratio) b  Operating Cycle c  Cash Cycle d  Return on Assets (ROA) (Direct approach, not DuPont) e  Return on Equity (ROE) (Direct approach, not Dupont)

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Problem 1 J&K Co. Balance Sheet As of Dec 31 of years 2019 and 2020 2019 2020 Assets Cash Accounts Receivable Inventories Property, Plant and

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