Question

Marnus Inc Income Statement For the Financial Year ended 12/31/19 $150,000,000 ($130,000,000) $20,000,000 12/31/18 $140,000,000 ($123,000,000) $17,000,000 $9,000,000 $10,000,000 Statement values in 000's Period Ending: Total Revenue (Net Revenue) Cost of Revenue (COGS) Gross Profit Operating Expenses Sales, General and Admin. Other Operating Items Total Operating Exp Operating Income (or loss) Interest Expense Earnings Before Tax Income Tax Net Income (or loss) $0 $0 | ($9,000,000) $11,000,000 ($1,000,000) $10,000,000 ($5,000,000) $5,000,000 ($10,000,000) $7,000,000 ($800,000) $6,200,000 ($4,000,000) $2,200,000 Dividends declared and paid Preferred Ordinary Ord Shares OS as of given date $ $ 12/31/19 500,000 1,000,000 1,000,000 $60.00 $ $ 12/31/18 400,000 1,000,000 1,000,000 $40.00 Stock Price as of given date

Calculate the ratio of the following:

Answer 1

Answer of Part 6:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $68,000,000 / $59,500,000
Current Ratio = 1.14

Answer of Part 7:

Quick Ratio = (Current Assets – Inventory) / Current Liabilities
Quick Ratio = ($68,000,000 - $12,000,000) / $59,500,000
Quick Ratio = $56,000,000 / $59,500,000
Quick Ratio = 0.94

Answer of Part 8:

Average Receivable = (Beginning Receivable + Ending Receivable) /2
Average Receivable = ($24,000,000 + $28,000,000) / 2
Average Receivable = $26,000,000

Receivable Turnover Ratio = Sales / Average Receivable
Receivable Turnover Ratio = $150,000,000 / $26,000,000
Receivable Turnover = 5.77 times

Answer of Part 9:

Average inventory = (Beginning Inventory + Ending Inventory) /2
Average Inventory = ($10,000,000 + $12,000,000) /2
Average Inventory = $11,000,000

Inventory turnover Ratio = Cost of Goods Sold / Average Inventory
Inventory Turnover Ratio = $130,000,000 / $11,000,000
Inventory Turnover Ratio =11.82 times