Compute and Discuss the following financial ratios: -Current Ratio (Current Assets / Current Liabilities) -Quick Ratio (Current Assets minus Inventory / Current Liabilities) The transactions for the Year ending December 31 for The Fitness Center were as follows: The company had Cash Sales of $750,000 for Membership Fees for the fitness center. The company had Cash Sales of $400,000 for Personal Trainer Fees for the fitness center. The company had Cash Sales of $850,000 for Equipment Sales for the distribution center. The Cost of Goods Sold from the Equipment Inventory for the Equipment Sales was $300,000 for the distribution center. The company purchased Equipment Inventory on credit (Accounts Payable) in the amount of $500,000 for the distribution center. The company paid $2,500 Cash for Towel Laundry Expense for the fitness center. The company paid $250,000 Cash for the CEO Wage Expense. The company paid $1,500 Cash for Advertising Expense for the fitness center. The company paid $100,000 Cash for the Sales Salaries Expense for the distribution center. The company paid $1,500 Cash for Equipment Repair Expense for the fitness center
Compute and Discuss the following financial ratios:
-
-Quick Ratio (Current Assets minus Inventory / Current Liabilities)
The transactions for the Year ending December 31 for The Fitness Center were as follows:
The company had Cash Sales of $750,000 for Membership Fees for the fitness center.
The company had Cash Sales of $400,000 for Personal Trainer Fees for the fitness center.
The company had Cash Sales of $850,000 for Equipment Sales for the distribution center.
The Cost of Goods Sold from the Equipment Inventory for the Equipment Sales was $300,000 for the distribution center.
The company purchased Equipment Inventory on credit (Accounts Payable) in the amount of $500,000 for the distribution center.
The company paid $2,500 Cash for Towel Laundry Expense for the fitness center.
The company paid $250,000 Cash for the CEO Wage Expense.
The company paid $1,500 Cash for Advertising Expense for the fitness center.
The company paid $100,000 Cash for the Sales Salaries Expense for the distribution center.
The company paid $1,500 Cash for Equipment Repair Expense for the fitness center
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