Calculate the following ratios for 2020 for Holiday Gifts Galore, Inc.: Industry avergage Average Collection Period: 35 days Debt ratio: 60%Return on Equity: 10.5%Current Ratio: 1.3Inventory Turnover: 8.1TImes interest earned: 2.5Net Profit Margin: 3.78%Return on total assets: 4.36% Based on the ratios you have calculated above, does Holiday Gifts Galore, Inc. appearto be stronger or weaker than the industry average data? Which specific ratios led you tothis conclusion? HOLIDAY GIFTS GALORE, INC.Balance Sheet As of December 31, 20202020DOLLARS% OF ASSETSASSETS:0.86%CashAccounts ReceivableInventoriesTotal Current Assets95,0001,200,0003,200,0004,495,00010.87%29.00%40.73%Net Fixed Assets6,540,00059.27%TOTAL ASSETS11,035,000100.00%LIABILITIES AND EQUITY:Accounts PayableNotes PayableAccrualsTotal Current Liabilities1,750,000800,00075,0002,625,00015.86%7.25%0.68%23.79%Long-Term DebtTOTAL LIABILITIES3,885,0006,510,00035.21%58.99%50,00075,0004,400,0004,525,0000.45%0.68%Common Stock at Par ValuePaid-In Capital in Excess of Par ValueRetained EarningsTOTAL STOCKHOLDERS' EQUITY39.87%41.01%TOTAL LIABILITIES AND EQUITY11,035,000100.00% HOLIDAY GIFTS GALORE, INC.Income Statement for Year Ended December 31, 20202020Sales RevenueCost of Goods SoldGross ProfitSelling ExpenseGeneral and Administrative ExpenseDepreciation ExpenseOperating Profits (EBIT)Interest ExpenseProfit Before TaxesDOLLARS7,800,0004,800,0003,000,0001,540,00095,000% OF SALES100.00%61.54%38.46%19.74%1.22%1.60%125,0001,240,000750,000490,000196,00015.90%9.62%6.28%2.51%3.77%Less: Taxes @ 40%Net Profit After Taxes294,000

Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Calculate the following ratios for 2020 for Holiday Gifts Galore, Inc.: Industry avergage Average Collection Period: 35 days Debt ratio: 60% Return on Equity: 10.5% Current Ratio: 1.3 Inventory Turnover: 8.1 TImes interest earned: 2.5 Net Profit Margin: 3.78% Return on total assets: 4.36% Based on the ratios you have calculated above, does Holiday Gifts Galore, Inc. appear to be stronger or weaker than the industry average data? Which specific ratios led you to this conclusion?

Calculate the following ratios for 2020 for Holiday Gifts Galore, Inc.: Industry avergage Average Collection Period: 35 days Debt ratio: 60% Return on Equity: 10.5% Current Ratio: 1.3 Inventory Turnover: 8.1 TImes interest earned: 2.5 Net Profit Margin: 3.78% Return on total assets: 4.36% Based on the ratios you have calculated above, does Holiday Gifts Galore, Inc. appear to be stronger or weaker than the industry average data? Which specific ratios led you to this conclusion?

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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