Use the following selected data from Business Solutions income statement for the three months ended March 31, 2012, and from its March 31, 2012, balance sheet to complete the requirements below computer services revenue, $25,307 net sales (of goods), $18,693 total sales and revenue, $44,000 cost of...

1 Gross margin with services revenue Gross margin Total ...

Use the following selected data from Business Solutions income statement for the three months ended March 31,

Question:

Use the following selected data from Business Solutions’ income statement for the three months ended March 31, 2012, and from its March 31, 2012, to complete the requirements below:
computer services revenue, $25,307; net sales (of goods), $18,693; total sales and revenue, $44,000; cost of goods sold, $14,052; net income, $18,833; quick assets, $90,924; current assets, $95,568; total assets, $120,268; current liabilities, $875; total liabilities, $875; and total equity, $119,393.

Required
1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio.
2. Compute the current ratio and acid-test ratio.
3. Compute the debt ratio and equity ratio.
4. What percent of its assets are current? What percent are long term?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...