Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 5 Use the following statements to answer the questions below. Balance sheet of Mark Merchandise for the year ended 28 February 2020 Assets $
Question 5
Use the following statements to answer the questions below.
Balance sheet of Mark Merchandise for the year ended 28 February 2020
Assets $ 123,000 $ 200,000 S 345,000 $ 100,000 Claims on Assets Current Liabilities Accounts Payable Notes Payable Total Current Liabilities Long-Term Note Total Liabilities Owners' Equity Total Claims $ 100,000 $ 150,000 $ 250,000 $ 768,000 Current Assets Cash Marketable Securities Accounts Receivable Inventories Total Current Assets Long-Term Assets Building (Gross) -Accumulated Depreciation Net Building Land Total Long-Term Assets Total Assets $ 300,000 $ 350,000 $ -50,000 $ 300,000 $ 325,000 S 550,000 S 843,000 $1,393,000 S 625,000 $1,393,000 $13 000 000 8 000 000 Income statement( 28.02/2020)($) Sales Less Cost of Sales Gross Profit Less Operating Expenses Operating Profit Less Interest expense Net Profit before tax Less Tax (28%) Net Profit after tax 000 000 3 500 000 1500 000 300 000 1200 000 336 000 864 000 364 000 Net Profit distributed as follows Dividend to ordinary shareholders Retained earnings Total ordinary shares 500 000 2000000 5.1) Determine the current and quick ratios and comment if they are acceptable.(3) 5.2)Determine the total debt/equity ratio (2) 5.3) Determine the gross profit and net profit ratios (2)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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