Question

PLEASE SHOW THE FORMULA FOR EXCEL

B35 B с D $ 2016 185,000 $ 80,000 104,000 11,900 380,900 514,500 895.400 S 2015 143,000 59,000 134,000 5,880 341,880 407.000 748,880 + $ S 1 Condensed financial statements for Games Galore are summarized below: 2 3 Balance Sheet 4 Cash 5 Accounts Receivable, Net 6 Inventory 7 Prepaid Insurance 8 Total Current Assets 9 Property and Equipment, Net 10 Total Assets 11 12 Current Liabilities 13 Long-term Liabilities 14 Total Liabilities 15 Contributed Capital 16 Retained Earnings 17 Total Stockholders' Equity 18 Total Liabilities and Stockholders' Equity 19 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 85,300 $ 284,000 369,300 299,000 227,100 526,100 895.400$ 96,800 224,000 320.800 299,000 129,080 428,080 748,880 $ S 3,031,000 1,949,000 1,082,000

Answer 1

SOLUTION:

COMPUTATION OF LIQUIDIY RATIOS CURRENT RATIO : CURRENT ASSETS CURRENT LIABLITIES : 380900/85300 = 4.46 TO 1 RECEIVABLES TURNOVER NET CREDIT SALES AVERAGE ACCOUNTS RECEIVABLE : 3031000/69500 = 43.61 TIMES AVERAGE ACCOUNTS RECEIVABLE = OPENING ACCOUNTS RECEIVABLES + CLOSING ACCOUNTS RECEIVABLES 2 = 80000+59000 2 69500 DAYS TO COLLECT 365 DAYS ACCOUNTS RECEIVABLE TURNOVER RATIO 365 DAYS 43.61 8.37 DAYS INVENTORY TURNOVER COST OF GOODS SOLD AVERAGE INVENORY 1949000 119000 16.38 TIMES AVERAGE INVENTORY = BEGINNING + ENDING INVENTORY 2 = 104000+134000 2 119000 E.) DAYS 'SALES IN INVENTORY = 365 DAYS INVENTORY TURNOVER 365 16.38 22.28 DAYS SOLVENCY RATIO A. ) DEBT TO ASSETS TOTAL DEBTS TOTAL ASSETS 369300 895400 0.41 TO 1 B.) TIMES INTEREST EARNED = EBIT TOTAL INTEREST EXPENSE 190600 14500 13.14 TIMES PROFITABILITY RATIOS A.) PROFIT MARGIN RATIO *100 NET PROFIT NET SALES 129100 *100 3031000 4.26% B.) GROSS MARGIN RATIO GROSS PROFIT NET SALES 1082000 *100 3031000 35.70%