Question 18 of 19 - / 10 View Policies Current Attempt in Progress (Liquidity and profitability analysis) Cathy's Cuisine Ltd. is a small restaurant and catering business started three years ago by Cathy Crosby. Initially the company's operations consisted of a small diner. In 2019, the company added the catering services as a way to expand sales without having to add space for seats. As the catering side of the business grew in 2020, the company purchased a used vehicle for deliveries. All sales in the diner are cash, debit, or credit card, but for catering jobs, customers are invoiced after the event. Most of the company's suppliers offer terms of 30 days. Selected financial information for Cathy's Cuisine Ltd. follows. 2020 2019 $9.430 15.620 10.090 14.570 27.040 $76,750 $3,200 9.500 6,020 14,570 25,510 $58,800 Assets Cash Accounts receivable Inventory Land Building and equipment Total assets Liabilities and equity Accounts payable Short-term note payable Mortgage payable current Mortgage payable Share capital Retained earnings Total liabilities and equity Other information Sales Cost of goods sold Net income $10,170 1.640 2,320 20,880 13,000 28,740 $76.750 $8,530 0 2.320 23,200 13,000 11.750 $58,800 $167.960 85,340 16.990 $141,340 78,790 5,090 Question 18 of 19 -/10 E Assume the growth in sales in 2020 is primarily from the catering business. Calculate the gross margins and the profit margins. (Round answers to 1 decimal ploce, c.8. 15.1%) 2020 2019 % 96 Gross margin Profit margin % % Calculate the company's current ratio and quick ratio for both years. (Round answers to 2 decimal places, eg. 1.84) 2020 2019 times times Current ratio times times Quick ratio Calculate the company's accounts receivable turnover ratio for 2020. How quickly is the company collecting its receivables? (Round answers to 1 decimal place, eg. 18.4.) 2020 times Accounts receivable turnover days Average collection period Question 18 of 19 - / 10 Assume that 50% of the sales come from the catering business and recalculate the accounts receivable turnover for 2020 (Round answers to 1 decimal place, e.g. 18.4) 2020 times Accounts receivable - catering turnover Average collection period days Calculate the company's inventory turnover ratio for 2020. (Round answers to 1 decimal place, eg. 18.4.) 2020 times Inventory turnover Calculate the company's accounts payable turnover ratio for 2020. (Round answers to 1 decimal place, e.g. 184.) 2020 times Accounts payable turnover