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
a The 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. You will then enter your answers in the questions that follow. The first set of questions will be to provide your ratios. Then you will analyze by comparing to industry and 2018 (both provided here).

Question at position 1

1

10 points

Question 1 is unpinned. Click to pin.

Question at position 1

What is the current ratio?

What is the current ratio?

what is the current ratio?