500 Question 4. 5 Marks) Selected informon from the comparative francial statements of the Simon and Marino 2019 and 2018 - Dear below 2012 Cash $ 20,000 $20.000 Accounts receivable net) 630,000 220.000 Inventory 450.000 190.000 Prepaid insurance 20.000 25.000 Total Current Assets 1.120,000 755.000 Non-Current Assets 89.000 45.000 Total assets 1.200.000 300.00 250.000 50.000 300,000 Short term bank loans Other Current Isabilities Total Current liabilities Long-term debt Total Liabilities Stockholder's Equity Total Liabilities and Stockholder's Equity 100.000 90.00 200,000 300.000 S0000 900.000 300.000 1.200.000 300.000 2200.000 1.800.000 50.000 60.000 220,000 700.000 530.000 25.000 Net credit sales Cost of goods sold Interest expense Income tax expense Net income 35.000 Required: Lenovo Total Liabilities and Stockholder's Equity 300.000 1.200.000 300.000 800.000 Net credit sales Cost of goods sold Interest expense 2200,000 1,800,000 50,000 Income tax expense 700,000 530,000 25,000 29,000 85.000 Net income 60,000 220,000 Required: 1. (1 Mark) Compute the following ratios for 2019. Show your calculations. 2. (2 Marks) Explain if the ratio is favorable or unfavorable. 3.2 Marks) Compare the ratios to the industry and comment which ratio is better the company of the industry? A B I 15 U S X Lenovo 500 Question 4. 5 Marks) Selected informon from the comparative francial statements of the Simon and Marino 2019 and 2018 - Dear below 2012 Cash $ 20,000 $20.000 Accounts receivable net) 630,000 220.000 Inventory 450.000 190.000 Prepaid insurance 20.000 25.000 Total Current Assets 1.120,000 755.000 Non-Current Assets 89.000 45.000 Total assets 1.200.000 300.00 250.000 50.000 300,000 Short term bank loans Other Current Isabilities Total Current liabilities Long-term debt Total Liabilities Stockholder's Equity Total Liabilities and Stockholder's Equity 100.000 90.00 200,000 300.000 S0000 900.000 300.000 1.200.000 300.000 2200.000 1.800.000 50.000 60.000 220,000 700.000 530.000 25.000 Net credit sales Cost of goods sold Interest expense Income tax expense Net income 35.000 Required: Lenovo Total Liabilities and Stockholder's Equity 300.000 1.200.000 300.000 800.000 Net credit sales Cost of goods sold Interest expense 2200,000 1,800,000 50,000 Income tax expense 700,000 530,000 25,000 29,000 85.000 Net income 60,000 220,000 Required: 1. (1 Mark) Compute the following ratios for 2019. Show your calculations. 2. (2 Marks) Explain if the ratio is favorable or unfavorable. 3.2 Marks) Compare the ratios to the industry and comment which ratio is better the company of the industry? A B I 15 U S X Lenovo