Question

ey Ratio Calculations 5 1. Create a single sheet that calculates the ratios listed below based on the financial statement 2. Please see Demo 1E for suggestions on how to complete this exercise (the ratios demo may not be 6 exactly the same for this assignment. Please make sure to include the ratios listed HERE: a. Ratios: Current, Quick, Inventory Turnover, Average Collection Period, Fixed Assets Turnover Total Asset Turnover, Debt Ratio, Debt to Equity, Times Interest Earned, Gross Profit Margin, Net Profit Margin, Return on Assets, Return on Equity Balance Sheet Liabilities and Owners Equity 10 Current Assets Current Liabilities S 20,000.00 10,000.00 20,000.00 50,000.00 Cash $ 10,000.00 10,000.00 S 20,000.00 12 Accounts Receivable Accounts Payable Notes Payable 14 Total Current Assets 15 16 17 Fixed Assets 18 19 Total Current Liabilities Long Term Debt S 20,000.00 Net Fixed Assets $ 85,000.00 Owners Equity Common Stock and paid-in surplus550,000.00 21 Retained Earning:S 45,000.00 $ 95,000.00 Total Owners Equity 24 Total Assets $135,000.00 Total Liabilities and Owners Equity S 135,000.00 26 27 28 29 Income Statement 31 COGS 32 Depreciation 33 EBIT 34 Interest expense 35 EBT 36 Taxes 37 Net Income 30 Revenue (all sales are credit 100,000.00 45,000.00 15,000.00 40,000.00 5,000.00 35,000.00 10,000.00 $ 25,000.00 39 40 41 EPS 42 Number of shares outstandin 100,000.00 0.25

Answer 1

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1. Current Ratio	Current Assets/Current Liabilities	50000/20000	2.50
2. Quick Ratio	Quick Assets/Current Liabilities	30000/20000	1.50
Quick Assets	50000-20000	$                                 30,000
	Current Assets-Inventory
4. Inventory Turnover	(Cost of Goods Sold/Average Inventory)	45000/20000	2.25
5. Average Collection Period	365 Days/Accounts Receivable Turnover	365/10	36.50
Accounts Receivable Turnover	Net Sales/Average Accounts Receivable	100000/10000	10.00
6. Fixed Asset Turnover	Net Sales/Fixed Assets	100000/85000	1.18
7. Debt Ratio	Total Liabilities/Total Assets	40000/135000	0.30
8. Debt to Equity Ratio	Total Liability/Totao Equity	40000/95000	0.42
9. Times Interest Earned	EBIT/Interest Expense	40000/5000	8.00
10. Gross Profit Margin ratio	Gross Profit/Net Sales	55000/100000	55.00%
Gross Profit	Revenue-COGS	100000-45000	55,000.00
11. Net Profit Margin ratio	Net Income/Net Sales	25000/100000	25%
12. Return on Total Assets	Net Income/Average total Assets	25000/135000	18.52%
12. Return on Equity	(Net Income-Preferred Dividends)/Average Common Equity	25000/95000	26.32%

Total Asset Turnover Net Sale/Total Assets 100000/135000 0.74