Question
RST Inc. shows the following financial details for the year ending 30-06-2022: Balance Sheet: Cash: $2,10,000 Accounts Receivable: $4,90,000 Inventory: $7,80,000 Prepaid Expenses: $45,000 Short-term
RST Inc. shows the following financial details for the year ending 30-06-2022:
Balance Sheet:
Cash: $2,10,000
Accounts Receivable: $4,90,000
Inventory: $7,80,000
Prepaid Expenses: $45,000
Short-term Investments: $3,80,000
Liabilities and Equity:
Accounts Payable: $5,00,000
Short-term Loans: $2,50,000
Long-term Debt: $6,50,000
Common Stock: $10,50,000
Retained Earnings: $5,90,000
Income Statement for the year ending 30-06-2022:
Sales: $46,00,000
Cost of Goods Sold: $27,00,000
Operating Expenses: $7,50,000
Interest Expense: $1,70,000
Tax Rate: 33%
Requirements:
Calculate the quick ratio.
Calculate the debt to equity ratio.
Calculate the return on equity.
Calculate the gross profit margin.
Calculate the average collection period (assuming 365 days in a year).
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