Calculate the following ratios based on the upcoming data based on the 2021 year-end. 13.1 Current Ratio 13.2 Quick Ratio 13.3 Debt to Equity
Calculate the following ratios based on the upcoming data based on the 2021 year-end.
13.1
13.2 Quick Ratio
13.3 Debt to Equity
13.4
13.5 Earnings per share
13.6
13.7 Inventory Turnover
13.8 Average Collection Period
13.9 Average Sale Period
13.10 Return on Common Shareholders’ Equity
2021 2020
Current Assets
Cash 10,000 6,500
Accounts Receivable 5,000 7,000
Inventory 15,000 10,000
Prepaids 2,000 3,500
Marketable Securities 23,000 20,000
Total Current Assets 55,000 47,000
Property Plant and Equipment 33,000 36,000
Intangible Assets 10,000 10,000
Total Assets 98,000 93,000
Current Liabilities
Accounts Payable 35,000 27,000
Current Long‐Term Debt 5,000 4,500
Current Notes Payable 2,000 2,500
Total Current Liabilities 42,000 34,000
Long‐Term Debt 33,000 38,000
Notes Payable 12,000 14,000
Total Liabilities 87,000 86,000
Shareholders' Equity
Common Shares ($10 per share) 1,000 1,000
Total Liabilities and Shareholders' Equity 98,000 93,000
*Preferred dividends of $500 were issued during the year
2021 2020
Revenue 100,000 80,000
Cost of Goods Sold 77,000 60,000
Gross Margin 23,000 20,000
Operating Expenses 16,000 12,000
Operating Income (before tax) 7 ,000 8,000
Income Tax 2 ,500 2,000
Net Income 4 ,500 6,000
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