Question 3

The following financial information is for Priscoll Company.

Priscoll Company Balance Sheets December 31
Assets		2020			2019
Cash		$ 136,500			$ 126,750
Debt investments (short-term)		107,250			78,000
Accounts receivable		202,800			175,500
Inventory		448,500			321,750
Prepaid expenses		48,750			44,850
Land		253,500			253,500
Building and equipment (net)		507,000			360,750
Total assets		$1,704,300			$1,361,100
Liabilities and Stockholders Equity
Notes payable (short-term)		$331,500			$234,000
Accounts payable		126,750			101,400
Accrued liabilities		78,000			78,000
Bonds payable, due 2023		487,500			331,500
Common stock, $10 par		390,000			390,000
Retained earnings		290,550			226,200
Total liabilities and stockholders equity		$1,704,300			$1,361,100

Priscoll Company Income Statement For the Years Ended December 31
		2020				2019
Sales revenue			$1,719,900				$1,540,500
Cost of goods sold			1,248,000				1,121,250
Gross profit			471,900				419,250
Operating expenses			370,500				325,650
Net income			$ 101,400				$ 93,600

Additional information:

1.		Inventory at the beginning of 2019 was $224,250.
2.		Accounts receivable (net) at the beginning of 2019 were $167,700.
3.		Total assets at the beginning of 2019 were $1,287,000.
4.		No common stock transactions occurred during 2019 or 2020.
5.		All sales were on account.

(a) Indicate, by using ratios, the change in liquidity and profitability of Priscoll Company from 2019 to 2020. (Round Current ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) 2019 2020 LIQUIDITY Current ratio : 1 :1 Accounts receivable turnover times times times times Inventory turnover PROFITABILITY Profit margin % % Asset turnover times times Return on assets % % Earnings per share By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor