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Table 1 shows financial statements for your company which is developing business plan. The company has closing share of $200.00 on December 2020. Based on
Table 1 shows financial statements for your company which is developing business plan. The company has closing share of $200.00 on December 2020. Based on bond the company interest expense will be $128,000 with effective tax rate of 30% in year 2020. Based on the presented financial data, compute various financial ratios as follows: i) Current ratio ii) Quick (acid-test) iii) Inventory turnover ratio iv) Day's sales v) Total assets turnover vi) Profit margin on sales vii) Price-to-Eamings Ratio viii) Book value per share ix) Retum on Common Equity (ROE)x) Retum on total assets. Table 1: Balance Sheet for your Company Balance Sheet Summary 2020 2019 2018 Cash 1,325,637 20,098 158,043 Securities 362,769 0 285, 116 Receivables 1,123,901 8,056 24,582 Allowances 5,580 0 632 Cost of keeping product stock 1,070,000 64,789 65,211 Current assets 3,994,000 28,834 377,833 Property and equipment, net 1,186,885 10,569 20,588 Depreciation 533,311 2,867 8,172 Total assets 4,834,696 36,671 513,378 Current liabilities 1,113,186 14,402 55,663 Preferred stock 0 0 0 Common stock 271 1 2 Share outstanding 12,507 11,238 1,506 Income to common stockholders 279,200 7,064 7,713 Total stockholders' equity 457,713 217,064 312,456 Total liabilities and equity 4,834,696 36,671 513,378 Income Statement Summary Total revenues 8,391,409 3,807 102,606 Cost of sales 7,614,589 4,4 45,27 Other expenses 335,808 31,661 71,954 Loss provision 2,143 0 0 Interest income 36,479 1,301 8,011 Income pretax 432,342 -69 -6,609 Income tax 138,407 2 2,425
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