Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the financial data shown below to calculate the following ratios for 2020: a. Current ratio. b. Quick ratio. c. Accounts receivable turnover. e. Inventory
Use the financial data shown below to calculate the following ratios for 2020: a. Current ratio. b. Quick ratio. c. Accounts receivable turnover. e. Inventory turnover. f. Days' sales in inventory. g. Gross profit margin h. Net profit margin i. Return on investment assets Balance sheet balances 12 31 2020 12 31 2019 Cash $ 23.550 $ 16.230 Accounts receivable 32.780 28.600 Inventory 29.500 18.900 Equipment 118.700 93.450 Total Assets 204.530 157.180 Accounts payable 34.700 30.900 Taxes payable 5.700 4.950 Long-term notes payable 53.760 67.400 Income statement amounts Revenue (credit only) Cost of Goods Sold Operating Expenses Pre-tax income Net income 299.000 195.500 67.620 35.880 25.116 Net Sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started