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QUESTION:4 On the basis of this information, compute (a) the current ratio, (b) the acid-test ratio, (c) the average collection period, (d) the inventory turnover
QUESTION:4 On the basis of this information, compute (a) the current ratio, (b) the acid-test ratio, (c) the average collection period, (d) the inventory turnover ratio, (e) the debt-to-net-worth ratio, (f ) the long-term debt-to-total-capitalization ratio, (g) the gross profit margin, (h) the net profit margin, and (i) the return on equity. Cash Accounts receivable Inventory Net fixed assets Accounts payable Accruals Bank loan, short term Long-term debt Common stock Retained earnings 20X1 $ 30,000 200,000 400,000 800,000 $1,430,000 $ 230,000 200,000 100,000 300 100,000 500,000 $1,430,000 $4,000,000 3,200,000 300,000 20X2 $ 20,000 260,000 480,000 800,000 $1,560,000 $ 300,000 210,000 100,000 0,000 100,000 550,000 $1,560,000 $4,300,000 3,600,000 200,000 20X3 $ 5,000 290,000 600,000 800,000 $1,695,000 $ 380,000 225,000 140,000 300,000 100,000 550,000 $1,695,000 $3,800,000 3,300,000 100,000 Sales Cost of goods sold Net profit Using the ratios discussed in the chapter, analyze the company's financial condition and performance over the last three years. Are there any problems
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