urgently needed
Financial Accounting Exercise 3 6 Companies, a home Improvement store chain, reported the following summarized figures 7 B DAVIS CONSULTING, INC. Income Statement Year Ended December 31, 2020 and 2019 2020 Net Sales s 460 000 cost of Goods Sold 239.000 Gross Profit 221 000 Operating Expenses 138000 Income From Opetations 83 000 Interest Expense 13.000 Income Before Income Tax S 70 000 $ Income Tax Expense $ 19000 Net income 51 000 2019 422 do 212 000 210 000 136 000 774 000 16000 58000 21000 37 000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 DAVIS CONSULTING, ING Balance Sheet December 31, 2020 and 2019 2010 2019 Liabilities 91090 B8 900 Total Cunnillantes Long term Liabilities 123000 121 000 Total Liabities 144 000 1580 16 000 2009, Stockholders' Equity 364000 Bo dobil Preftened Stack 3 212009 176 ODCommon Stockholders' Equity 581oO 54600 Total Liabilities an Equity 2020 227 000 117000 344000 2019 240 000 96 000 336 000 Assets ch Short-term Investments Accounts Receivable Net Merchandise Inventory Prald Lxpenses Total current Property.Pland Equipment, Net Total Assets 92000 145 000 581 000 92 DONT 118000 546000 DAVIS CONSULTINGAR SO Doo corrent tidud 38 local ASES UL 581000 546 000 Total Llabilities an Equity 981 DAVIS CONSULTING's has 50,000 common shares outstanding during 2020. 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Evaluating current ratio Requirements 1. Compute Companies' current ratio at May 31, 2020. 2. Did Companies current ratio improve, deteriorate, or hold stetry during 20202 Computing Inventory, gross profit, and receivables ratios 3. Compute the inventory turnover, days sales in inventory, and gross profit percentage for Companies for 2020. 4. Compute days' sales in receivables during 2020. Round dollar amounts to three decimal places. Assume all sales were on account. 5. What do these ratios say about Companies ability to sell inventory and collect receivables? Measuring ability to pay liabilities 6. Compute the debt ratio and the debt to equity ratio at May 31, 2020 for Companies 7. is ability to pay its liabilities strong or weak? Explain your reasoning Measuring profitability 8. Compute the profit margin ratia for Companies for 2020 9. Compute the rate af return on total assets for 2020 10. Compute the asset turnover ratio for 2020, 11. Compute the rate of return on common stockholders equity for 2020. 12. Are these rates of return strong or weakExplain your reasoning Computing EPS and P/E ratio 13. Compute earnines per share EPS for 2020 for Round to the nearest cent 14 compute Companier price canines ratio for 2020. The market pricepen share of stock 5850 S. What do these mean wine company profitabil
