Question
The summarized financial data for Digital Corp for the year ended December 31, 2023, are: Income Statement Amount Net Sales $1,000,000 Cost of Goods Sold
The summarized financial data for Digital Corp for the year ended December 31, 2023, are:
Income Statement | Amount |
Net Sales | $1,000,000 |
Cost of Goods Sold | $600,000 |
Operating Expenses | $320,000 |
Net Income | $80,000 |
Balance Sheet | Amount |
Current Assets | $220,000 |
Total Assets | $500,000 |
Current Liabilities | $110,000 |
Long-term Debt | $140,000 |
Shareholders' Equity | $250,000 |
Requirements: a. Calculate the inventory turnover ratio. b. Determine the return on equity. c. Compute the gross profit margin. d. Evaluate the company’s current ratio. e. Assess the company’s leverage with the debt to equity ratio.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
