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The following information is taken from Randy Technology's statements of financial position at December 31, 2019 and 2020, and their income statement for calendar 2020:
The following information is taken from Randy Technology's statements of financial position at December 31, 2019 and 2020, and their income statement for calendar 2020: 2020 2019 Assets: Cash $ 38,000 $ 42,000 Short Term investments 25,000 -0- Accounts receivable!.. 118,000 22,000 Inventory.. 151,000 42,000 Prepaid insurance. 16,000 19,000 Long-term investments 49,000 20,000 Equipment (net).. 130,000 130,000 Land 33,000 33,000 Goodwill 45,000 45,000 Total assets $ 605,000 $ 353,000 Net income. $ 52,250 295,000 Sales (all on credit) Cost of goods sold.. 123,000. Interest expense. 15,600 Income tax expense. 17,450 Tax rate = 26% Required: From the above information, calculate the following ratios for 2020: 2.Accounts receivable turnover 3. Return on assets ratio 4.Gross profit percentage ratio
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