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This week you will explore analysis by computing key performance indicators for a company. You should calculate each ratio using the financial statements provided and
This week you will explore analysis by computing key performance indicators for a company. You should calculate each ratio using the financial statements provided and then choose the correct answer from the choices provided in the assignment. You will round to two decimal places. If it is expressed at a %, you need to convert to % and then take out two decimal places. Standard rounding applies.
Rush Industries Income Statement for the Year Ended December 31, 2019 | ||||
Sales revenue | $ 160,000 | |||
Less: Cost of sales | 106,000 | |||
Gross profits | $ 54,000 | |||
Less: Operating expenses | ||||
Sales and marketing expense | $ 16,000 | |||
General and administrative expenses | 10,000 | |||
Lease expense | 1,000 | |||
Depreciation expense | 10,000 | |||
Total operating expense | $ 37,000 | |||
Operating profits | $ 17,000 | |||
Less: Interest expense | 6,100 | |||
Net profits before taxes | $ 10,900 | |||
Less: Taxes | 4,360 | |||
Net income | $ 6,540 | |||
Rush Industries Balance Sheet December 31, 2019 | ||||
Assets | ||||
Cash | $ 500 | |||
Marketable securities | 1,000 | |||
Accounts receivable | 25,000 | |||
Inventories | 45,500 | |||
Total current assets | $ 72,000 | |||
Land | $ 26,000 | |||
Buildings and equipment | 90,000 | |||
Less: Accumulated depreciation | 38,000 | |||
Total fixed assets | $ 78,000 | |||
Total assets | $ 150,000 | |||
Liabilities and Stockholders Equity | ||||
Accounts payable | $ 22,000 | |||
Notes payable | 47,000 | |||
Total current liabilities | $ 69,000 | |||
Long-term debt | 22,950 | |||
Total liabilities | 91,950 | |||
Common stocka | 31,500 | |||
Retained earnings | 26,550 | |||
Total stockholders' equity | 58,050 | |||
Total liabilities and stockholders equity | $ 150,000 | |||
aThe firms 3,000 outstanding shares of common stock closed 2019 at a price of $25 per share. |
Using the financial statements above, you will calculate the 2019 actual ratios.
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