Question

Data Table X - !! Question ent analys al statemer ndustries' 2018 and 2019 the company's o B $160,000 106,300 $53,700 | (Rour over is Zach Industries Income Statement for the Year Ended December, 31, 2019 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses N Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes ction perio %. (Roy earnedral $16,300 10.100 1,040 9.800 $37.240 $16,460 6,500 $9.960 ginis Print Done r answerd Clear All Check

Answer 1

1. Ratio Calculation -

Ratio Computation 2019 Current Ratio Current Assets Current Liabilities $ 72,490 $ 69,500 1.04 Quick Ratio Current Assets - Inventory Current Liabilities $ 26,890 $ 69,500 0.39 Inventory Turnover Cost of good sold Average Inventory $ 106,300 $ 45,600 2.33 Average Collection Period Accounts Receivable Net Sales / 365 $ 25,400 $ 438 57.94 Days Debt Ratio Total Debt Total Assets $ 92,450 $ 150,590 11 61.39% Times Interest Earned Ratio Operating Income Interest Expense $ 16,460 $ 6,500 2.53 Gross Profit Margin Gross Profit Net Sales II $ 53,700 $ 160,000 33.56% Net Profit Margin Net Profit Net Sales 11 $ 5,600 $ 160,000 = 3.5% Return on Total Assets Net Income Total Assets = $ 5,600 $ 150,590 3.7% Return on Common Equity Net Income Shareholder's Equity = $ 5,600 $ 58,140 9.6%