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The annual financial statements of Cosmos Corporation are as below : Cosmos Corporation Income Statement for Year Ended December 31, 2021 Sales $548,600 Cost of

The annual financial statements of Cosmos Corporation are as below :

Cosmos Corporation

Income Statement for Year Ended December 31, 2021

Sales

$548,600

Cost of goods sold

$397,250

Gross profit

$151,350

Operating expenses

$95,600

Interest expense

$6,100

Income before taxes OR PBT

$49,650

Income taxes

$22,598

Net income OR PAT

$27,052

Cosmos Corporation

Balance Sheet as on December 31, 2021

Assets:

Liabilities and Equity:

Cash

$10,000

Accounts payable

$12,500

Marketable Securities

$8,400

Accrued wages payable

$3,200

Accounts receivable, net

$33,700

Income taxes payable

$3,300

Merchandise inventory

$32,150

Long-term Borrowings

$63,400

Prepaid expense

$650

Common stock ($10 face value)

$90,000

PPE assets, net

$155,300

Retained earnings

$67,800

Total assets

$240,200

Total liabilities and equity

$240,200

Assume that Market Value per share is $80.

You are required to compute the given ratios and Comment with in the space provided

  1. Current Ratio

(if industry average is 2.5)

  1. Price to Earnings Ratio

  1. Days Collection period (365 days)

(if industry average is 35 days)

  1. Inventory Turnover

(if industry average is 15)

  1. Long Term Debt to Equity Ratio

  1. Times interest earned

  1. Net Profit Margin

(If industry average is 9%)

  1. Return on Equity

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