QUESTION

Tanesha D Company Limited makes sales of $6,900,000.00 over the 2019 fiscal period. If the company states the following financials:

Tanesha D Company Income Statement for the Year Ended December 31, 2019

ASSETS Current Assets Cash $140,000.00 Marketable securities $260,000.00 Accounts Receivable $650,000.00 Inventories $800,000.00 Total Current Assets $1,850,000.00 Gross Fixed Assets (at cost) $3,780,000.00 Less accumulated depreciation $1,220,000.00 Net fixed assets $2,560,000.00 Total assest $4,410,000.00

LIABILITY Current liability Accounts payables $480,000.00 Notes payables $500,000.00 Accruals $ 80,000.00 Total current liabilities $1,060,000.00 Long-term debt (including financial lease) $1,560,000.00 Stockholders equity Preferred stock (25,000 share@$2 dividend) $180,000.00 Common stock (200,000 shares @$3 dividents) $200,000.00 Paid-in capital excess of par $810,000.00 Retaining earnings $600,000.00 Total stockhlders equity $1,790,000.00 Total liabilities and stockholders equity $4,410,000.00

Tanesha D Company Income Statement for the Year Ended December 31, 2019
Sales Revenue	6,900,000.00
Less Cost of Goods Sold	-4,200,000.00
Gross Profit	2,700,000.00
Less Operating Expenses
Sales Expenses	$750,000.00
General Administrative expense	$1,150,00.00
Lease Expenses	$ 210,00.00
Depreciation Expenses	235,000.00
Total Operating Expenses	-2,345,000.00
Earnings before Interest Taxes	355,000.00
Less Interest Expenses	-85,000.00
Net Profit Before tax	$270,000.00
Less Taxes 9rate 40%)	$81,000.00
Net Profit after tax	$189,000.00
Less preferred stock dividends	-10,800.00
Net Income	$178,200.00
Earnings per share (EPS)	1.43

a) Calculate the current ratio(2 Marks)

b) Calculate the Average collection period(2 Marks)

c) Determine the Time interest earned (2 Marks)

d) Determine the Debt to Equity ratio (2 Marks)

e) Determine the ROE using the DuPont model ( 4 Marks)