Question
The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement Revenue 10,972 11,598 10,470 Cost of Goods Sold 8,942 8,767
The Hill Company reported the following results:
Year 3 | Year 2 | Year 1 | |||
Income Statement | |||||
Revenue | 10,972 | 11,598 | 10,470 | ||
Cost of Goods Sold | 8,942 | 8,767 | 7,901 | ||
Selling, General & Admin. Expenses | 2,470 | 2,611 | 2,479 | ||
Interest expense | 76 | 80 | 28 | ||
Net Income | (516) | 140 | 62 | ||
Balance Sheet | |||||
Assets | |||||
Cash | 1,354 | 1,316 | 1,880 | ||
Prepaid expenses | 202 | 522 | 125 | ||
Accounts receivable | 375 | 250 | 231 | ||
Inventory | 745 | 698 | 455 | ||
Property & equipment (net) | 20,464 | 18,810 | 17,727 | ||
Total Assets | 23,140 | 21,596 | 20,418 | ||
Liabilities | |||||
Accounts payable | 2,824 | 743 | 678 | ||
Unredeemed gift cards | 410 | 850 | 636 | ||
Notes Payable | 15,457 | 18,048 | 17,024 | ||
Stockholders' Equity | |||||
Common Stock | 985 | 545 | 815 | ||
Retained Earnings | 3,464 | 1,410 | 1,265 | ||
Total Liabilities & Equity | 23,140 | 21,596 | 20,418 |
1a. What is the company's debt ratio for Year 1? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
1b.What is the company's gross profit ratio for Year 3? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
1c.What is the company's net profit ratio for Year 2? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
1d.What is the company's return on investment ratio for Year 1? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
1e.Based on the three years of data, has the company's return on investment ratio has improved, worsened, or stayed the same?
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