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Solar System Inc. has provided you with the following information: 2021 $ 47,000 Account Cash Short-term (trading) investments Accounts receivable Inventory Prepaid expenses Total assets
Solar System Inc. has provided you with the following information: 2021 $ 47,000 Account Cash Short-term (trading) investments Accounts receivable Inventory Prepaid expenses Total assets Total current liabilities Net sales, all on credit Cost of goods sold Operating income Income tax expense Net income Interest expense Common shares (no preferred) Retained earnings Required 2022 $ 21,000 28,000 102,000 86,000 11,000 1,503,000 205,000 877,000 570,000 165,000 20,000 109,000 36,000 420,000 153,000 116,000 64,000 9,000 1,489,000 241,000 850,000 555,000 158,000 18,000 100,000 40,000 420,000 74,000 Calculate the following ratios for 2022. Round all values to two decimals (eg 34.56%) Show all calculations. 1. Profit margin on sales 2. Quick (acid-test) ratio 3. Receivables turnover 4. Debt to total assets 5. Times interest earned 6. Rate of return on assets 7. Rate of return on common share equity
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