Question 1

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Gross profit margin

Note: Enter as a percentage and round your answer to two decimal places (e.g. for 10.25 percent, type "10.25").

Question 2

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Current ratio

Note: round your answer to two decimal places.

Question 3

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Days inventory

Note: round your answer to two decimal places.

Question 4

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Average collection period

Note: round your answer to two decimal places.

Question 5

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Days purchases outstanding

Note: round your answer to two decimal places.

Question 6

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Leverage ratio

Note: round your answer to two decimal places.

Question 7

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Debt-to-equity ratio

Note: round your answer to two decimal places.

Question 8

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Asset turnover

Note: round your answer to two decimal places.

Question 9

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Cash conversion cycle

Note: round your answer to two decimal places.

Question 10

At the end of 2017, Comfy Home is performing a ratio analysis. Using the financial statements provided, please calculate the following ratio for Comfy Home:

Interest coverage ratio

Note: round your answer to two decimal places.

COMFY HOME COMPANY Balance Sheet As of December 31, 2016 Current Assets: Cash Accounts receivable Inventories Prepaid expenses Total Current Assets $ $ $ $ 110,000 140,000 310,000 25,000 585,000 Current Liabilities: Accounts Payable Salaries and wages payable Current portion of bank loan Deferred revenue Total Current Liabilities $ $ $ $ 90,000 20,000 45,000 15,000 170,000 $ $ Non-Current Assets: Furniture and fixtures Buildings and property (Accumulated Depreciation) Total Non-Current Assets Non-Current Liabilities: Bank Loan Total Non-Current Liabilities $ 300,000 300,000 $ $ $ $ $ 120,000 450,000 (154,000) 416,000 Owners' Equity: Contributed Capital Retained earnings Total Equity $ $ 250,000 281,000 531,000 $ Total Assets $ 1,001,000 Total Liabilities and Owners' Equity $ 1,001,000 COMFY HOME COMPANY Balance Sheet As of December 31, 2017 COMFY HOME COMPANY Income Statement For the year ending December 31, 2017 $ $ $ Current Assets: Cash Accounts receivable Inventories Prepaid expenses Total Current Assets $ $ $ $ 143,000 178,000 358,000 33,000 712,000 Current Liabilities: Accounts Payable Salaries and wages payable Current portion of bank loan Deferred revenue Total Current Liabilities $ $ 196,000 30,000 45,000 18,000 289,000 $ $ $ $ S $ $ Total Revenue Cost of Goods Sold Gross Profit Salaries and wages Marketing expenses Selling, General, and Administrative Insurance expense Depreciation expense Operating Profit Interest expense Taxes Net Income 1,602,000 985,000 617,000 199,000 46,000 98,000 48,000 44,000 182,000 30,000 33,000 119,000 $ $ Non-Current Assets: Furniture and fixtures Buildings and property (Accumulated Depreciation) Total Non-Current Assets $ Non-Current Liabilities: Bank Loan Total Non-Current Liabilities $ $ $ 255,000 255,000 $ 150,000 540,000 (198,000) 492,000 $ $ $ $ $ Owners' Equity: Contributed Capital Retained earnings Total Equity $ $ $ 260,000 400,000 660,000 Total Assets $ 1,204,000 Total Liabilities and Owners' Equity $ 1,204,000