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The condensed financial statements of the Lavender Companies, Inc. for the years ended June 30, 2021 and 2020 are presented as follow: Lavender Companies, Inc

The condensed financial statements of the Lavender Companies, Inc. for the years ended June 30, 2021 and 2020 are presented as follow:

Lavender Companies, Inc Balance Sheets June 30 (in millions)

2021

2020

Assets

Current assets

Cash and cash equivalents

Account Receivables (net)

Inventories

Prepaid expenses and other current assets

Total current assets

Property, plant and equipment (net)

Investments

Intangibles and other assets

Total assets

RM546.9

624.8

544.5

211.4

1,927.6

580.7

30.3

877.9

RM3,416.5

RM346.7

580.6

630.3

181.3

1,738.9

528.7

41.0

910.2

RM3,218.8

Liabilities and Stockholders' Equity

Current liabilities

Long-term liabilities

Stockholders' equity common

Total liabilities and stockholders' equity

RM959.6

635.0

1,821.9

RM3,416.5

RM856.7

650.0

1,712.1

RM3,218.8

Lavender Companies, Inc Income Statements For the year ended June 30 (in millions)

2021

2020

Revenues

Cost and expenses

Cost of goods sold

Selling and administrative expenses

Interest expense

Total costs and expenses

Pretax income

Income taxes

Net income

RM4,751.5

1,273.4

3,133.6

17.6

4,424.6

326.9

114.4

RM212.5

RM4,682.1

1,226.4

2,947.6

26.7

4,200.7

481.4

174.0

RM307.4

Analyse Lavender's financial statements. Include computation of the following ratios for 2020 and 2021 and comparisons of these ratios in your discussion.

  1. Current ratio
  2. Inventory turnover (Inventory on June 30 2019 was RM546.3)
  3. Return on assets (Assets on June 30 2019 were RM3,043.3)
  4. Return on common stockholders' equity
  5. Debt to total asset ratio

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