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Summer Days Corporation Comparative Balance Sheet December 31, 2019 and 2018 20192018 Current assets: Cash$ 140,000$ 90,000 Short-term investments90,00080,000 Accounts receivable, net350,000220,000 Inventory500,000430,000 Prepaid expenses
Summer Days Corporation Comparative Balance Sheet December 31, 2019 and 2018 20192018 Current assets: Cash$ 140,000$ 90,000 Short-term investments90,00080,000 Accounts receivable, net350,000220,000 Inventory500,000430,000 Prepaid expenses 30,00030,000 Total current assets$1,110,000$ 850,000 Property, plant, and equipment, net750,000500,000 Other assets 280,000300,000 Total assets$2,140,000$1,650,000 Current liabilities: Short-term notes payable$650,000$670,000 Accounts payable200,000225,000 Total current liabilities$850,000$895,000 Non-current debt380,000220,000 Total liabilities$1,230,000$1,115,000 Shareholders' equity: Common shares $500,000$500,000 Retained earnings410,00035,000 I Total shareholders' equity$ 910,000$535,000 Total liabilities and shareholders' equity$2,140,000$1,650,000 Notes: Net sales (all on credit) and cost of goods sold for the year ended December 31, 2019, were $2,000,000 and $1,200,000, respectively. The number of common shares outstanding has been 50,000 since the company began operations. Required: Calculate the following ratios for the year ended December 31, 2019: a. current ratio b. acid-test ratio c. inventory turnover d. accounts receivable turnover e. debt ratio f. book value per common share of stock Dace Break
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