Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 2 (12 points) Flora Resort Balance Sheet For the year ended 31 December 2021 Assets HKS HK$ Cash on hand Bank Accounts Receivable Marketable
Problem 2 (12 points) Flora Resort Balance Sheet For the year ended 31 December 2021 Assets HKS HK$ Cash on hand Bank Accounts Receivable Marketable Securities Inventory Liabilities & Owner's Equity Accounts Payable Deposit Received Short-term bank loan 152,000 257,500 654,000 148,000 282,300 1,493,800 1,240,300 83,500 152,000 1,453,800 Long-term bank loan 500,000 Fixed Assets 1,500,000 Owner's Equity 1,000,000 Total Liabilities & Owner's Equity Total Assets 2,993,800 2,993,800 Flora Resort achieved HK$1,000,000 revenue and $500,000 of net income (Last year 2020: $500,000 revenue and $400,000 net income), cost of goods sold for the month of December was $37,700; all of the sales transactions were on credit and the year-end balances above reflect the average balances for the year. a) Current Ratio b) Acid-Test Ratio c) Debt to Total Assets Ratio d) Long-Term Debt to Equity Ratio e) Return on Assets Ratio f) Profit Flow Through % g) Receivable Turnover Ratio h) Inventory Turnover for December 2021 Required: Calculate all of the above financial ratios and write down your answers on the answer sheet. (1.5 points each)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started