Answered step by step
Verified Expert Solution
Link Copied!

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 2019 2018 2017
Cash and short-term investments $ 645,992 $ 760,044 $ 749,693
Accounts receivable 47,821 41,810 39,721
Inventory 347,452 397,514 316,208
Other current assets 115,535 118,120 98,788
Total current assets 1,156,800 1,317,488 1,204,410
Long-lived assets 575,332 624,982 571,302
Total assets $ 1,732,132 $ 1,942,470 $ 1,775,712
Current liabilities $ 470,402 $ 450,401 $ 402,837
Total liabilities 509,445 522,286 421,641
Shareholders equity 1,222,687 1,420,184 1,354,071
Total debt and equity $ 1,732,132 $ 1,942,470 $ 1,775,712
Income Statement
Sales $ 3,478,802 $ 3,121,565 $ 2,948,294
Cost of sales 2,100,480 1,990,471 1,778,143
Gross margin $ 1,378,322 $ 1,131,094 $ 1,170,151
Operating expenses 974,784 854,385 851,276
Earnings before interest and taxes $ 403,538 $ 276,709 $ 318,875
Net income $ 247,108 $ 153,205 $ 142,147
Interest paid in cash 95 197 176
Taxes paid in cash 143,509 100,506 47,237
Cash Flows
Cash flow from operations $ 582,171 $ 495,817 $ 395,416
Capital expenditures 95,439 92,466 78,904
Dividends 87,092 87,092 84,666

Required:

Calculate the following liquidity ratios for Metro Eagle in 2018 and 2019:

1. Inventory turnover

2. Current ratio.

3. Quick ratio

4. Cash flow ratio

Inventory Turnover 2019 2018
Numerator = = =
Denomentor = = =
Current Ratio 2019 2018
Numerator = = =
Denominator = = =
Quick Ratio 2019 2018
Numerator = = =
Denominator = = =
Cash Flow Ratio 2019 2018
Nominator = = =
Denominator = = =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions