Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is: 1- current ratio for 2020 2- Quick ratio for 2020 3- Inventory turnover ratio for 2020 4- the return on asset 2020 5-the

image text in transcribed

What is:

1- current ratio for 2020

2- Quick ratio for 2020

3- Inventory turnover ratio for 2020

4- the return on asset 2020

5-the price earning ratio for 2020

Presented below are the statement of earnings (2020) and the summary statement of financial position (2019 and 2020) for Trek Inc. Trek Inc. Statement of Earnings For the year ended December 31, 2020 (in thousands of dollars) Sales $1,640 Cost of sales (800) Gross profit 840 Depreciation expense Selling and administrative expenses Earnings from operations (40) (400) 400 Loss on sale of equipment Interest expense Earnings before income taxes Income tax expense Net earnings (6) (24) 370 (100) $_270 Trek Inc. Summary Statement of Financial Position (in thousands of dollars) Dec. 31, 2020 Dec. 31, 2019 Assets Cash $ 52 $ 60 Short-term Investments 80 40 Account Receivable (net) 198 80 Inventories 240 160 Prepaid Expenses 3 7 Property, Plant and Equipment (net) 857 853 Total Assets $1,430 $1,200 Liabilities and Shareholders' Equity Current Liabilities $ 240 Bonds Payable Common Shareholders' Equity Total Liabilities and Shareholders' Equity 200 990 $1,430 $ 160 200 840 $1,200 Additional information: a) Trek, Inc. purchased new equipment in 2020 for $55,000. It also sold used equipment during the year. b) Trek Inc. had 84,000 common shares outstanding at December 31, 2019. On January 2, 2020, Trek Inc. sold and issued 6,000 additional common shares for a total amount of $60,000. There were no other transactions affecting common shares during 2020. The market price per share was $33 at December 31, 2020. Trek's board of directors declared dividends at December 31, 2020, payable in January 2021. 1/2

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

The Consolations Of Economics How We Will All Benefit From The New World Order

Authors: Gerard Lyons

1st Edition

0571307795, 9780571307791

More Books

Students also viewed these Accounting questions

Question

What is the persons job (e.g., professor, student, clinician)?

Answered: 1 week ago