Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is the balance sheet and Income statement for Metro Eagle Outfitters. In condensed form, plus some Information from the cash flow statement Balance
The following is the balance sheet and Income statement for Metro Eagle Outfitters. In condensed form, plus some Information from the cash flow statement Balance Sheet 2022 2021 2020 Cash and short-term investments $ 637,992 $ 752, 044 $ 741,693 Accounts receivable 47,021 41,010 38, 121 Inventory 339,452 381,514 308,208 Other current assets 124,335 126,920 1ee,388 Total current assets 1,148,888 1,381,488 1,188,410 Long-lived assets 579,332 636,982 583, 382 Total assets $ 1,728,132 $ 1,938, 470 $ 1,771,712 Current liabilities $ 450,402 $426,481 $ 394,837 Total liabilities 586, 245 519,886 419,241 Shareholders' equity 1,221,887 1,418,584 1,352,471 Total liabilities and equity $ 1,728,132 $ 1,938,47 $ 1.771.712 Income Statement Sales $ 3,477,202 $ 3, 120, 765 $ 2,946,694 Cost of sales 2, e92,480 1,982, 471 1,779, 143 Gross margin $ 1,384,722 $ 1,138,294 $ 1,176,551 Operating expenses 981,984 862,385 858,476 Earnings before interest and taxes $ 482,738 $ 275,909 $ 318,075 Net income $ 239,108 $ 152,485 $ 141,347 Interest paid in cash 87 189 168 Taxes paid in cash 142,709 189,186 46,437 Cash Flows Cash flow from operations $ 538,171 $ 443,817 $ 387,416 Capital expenditures 94,639 99,866 77,384 Dividends 86,292 86,292 83,866 Required: Calculate the following liquidity ratios for Metro Eagle in 2021 and 2022 1. Inventory turnover. 2. Current ratio. 3. Quick ratlo. 4. Cash flow ratlo. 2022 2021 Numerator Denominator Inventory Turnover Cost of sales Average inventory 0 Current Ratio 2022 2021 Current assets Numerator Denominator 0 0 Current liabilities Quick Ratio 2022 2021 Numerator Denominator Cash and receivables Current liabilities 0 0 2022 2021 Numerator Denominator Cash Flow Ratio Cash flow from operations Current liabilities 0 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started