Refer to the following financial statements of Delima Corporation for 2019 and2020:Delima CorporationIncome StatementsFor the year ended 31 December (in millions)20202019$13,198$ 7,750$ 5,448$3,472$ 1,976233$ 12,397$ 7,108$ 5,289$ 3,299$ 1,990$$4$ 1,742Net salesCost of goods soldGross profitSelling and administrative expensesIncome from operationsInterest expenseOther (income) expense, net$24811Income before income taxes$ 1,732Income tax expense503502Net income$ 1,229$ 1,240Delima CorporationBalance sheetFor the year ended 31 December (in millions)Assets20202019Current assetsCash444$$ 1,188$ 1,132460$ 1,190$ 1,056Accounts receivables (net)InventoriesOther current assets247225$ 3,027$ 3,281$ 5,593$ 2,915$ 3,128$ 5,804$ 11,847Total current assetsProperty (net)Other assetsTotal assets$11,901Liabilities and Stockholders' Equity$ 3,313$ 6,826$ 1,762$11,901$ 3,184$ 6,509$ 2,154$ 11,847Current liabilitiesLong-term liabilitiesStockholders' equity - common sharesTotal liabilities and stockholders' equity Required:Analyze Delima's financial statement. Include the following ratios for 2020 anddiscuss your findings (2019 values are provided for comparison):1) Current ratio2) Inventory turnover (year 2019 - 7.2 times)3) Debt to assets ratio (year 2019 - 82%)4) Return on assets. (year 2019 - 10.8%)5) Profit margin (yea. (2019 - 10.0%)(year 2019 - 0.92:1)

Hi student Since there are multiple subparts, we will answer only first three subparts.

Required: Analyze Delima's financial statement. Include the following ratios for 2020 and discuss your findings (2019 values are provided for comparison): 1) Current ratio 2) Inventory turnover (year 2019 - 7.2 times) 3) Debt to assets ratio (year 2019 - 82%) (year 2019 - 0.92:1)

Required: Analyze Delima's financial statement. Include the following ratios for 2020 and discuss your findings (2019 values are provided for comparison): 1) Current ratio 2) Inventory turnover (year 2019 - 7.2 times) 3) Debt to assets ratio (year 2019 - 82%) (year 2019 - 0.92:1)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.3C

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