Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following selected data from Success Systems' income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance

Use the following selected data from Success Systems' income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below:

Computer services revenue, $28,584

Net sales (of goods), $20,574

Total sales and revenue, $49,158

Cost of goods sold, $12,816

Net income, $19,536

Quick assets, $88,112

Current assets, $97,840

Total assets, $123,232

Current liabilities, $715

Total liabilities, $715

Total equity, $122,517.

1.

Compute the gross margin ratio. (Both with and without services revenue) and net profit margin ratio.(Round your answers to 1 decimal place.)

What is Gross Margin Ratio With Services Revenue?_____%

What is Gross Margin Ratio Without Services Revenue?_____%

What is Net profit margin ratio? ______%

2.

Compute the current ratio and acid-test ratio. (Round your answers to 1 decimal place.)

Current ratio is?

Acid-Test ratio is?

3.

Compute the debt ratio and equity ratio. (Round your answers to 1 decimal place.)

Debt ratio is ____%?

Equity ratio is____%?

4.

What percent of its assets are current? What percent are long term? (Round your answers to the nearest whole percentage.)

Current assets is _____%?

Long-term assets is ____%?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Knapp, Rittenberg

1st Edition

1133731244, 978-1133731245

More Books

Students also viewed these Accounting questions

Question

Identify how culture affects appropriate leadership behavior

Answered: 1 week ago