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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 | = | = | = |
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