Selected Financial Ratios Sandhill Inc. Current Industry Average 2020 2019 Current ratio 1.62 1.63 1.56 Acid-test ratio 0.63 8.48 0.61 0.66 Times interest earned 8.43 8.38 Profit margin on sales 13.13 % 12.03 % 12.93 % Asset turnover 1.77 1.76 1.77 Inventory turnover 3.1 3.14 3.11 (a) Calculate a new set of ratios for the fiscal year 2021 for Sandhill based on the financial statements presented. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Current ratio : 1 Acid-test ratio : 1 Times interest earned Profit margin on sales % Asset turnover times Inventory turnover times Click if you would like to Show Work for this question: Open Show Work
Selected Financial Ratios Sandhill Inc. Current Industry Average 2020 2019 Current ratio 1.62 1.63 1.56 Acid-test ratio 0.63 8.48 0.61 0.66 Times interest earned 8.43 8.38 Profit margin on sales 13.13 % 12.03 % 12.93 % Asset turnover 1.77 1.76 1.77 Inventory turnover 3.1 3.14 3.11 (a) Calculate a new set of ratios for the fiscal year 2021 for Sandhill based on the financial statements presented. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Current ratio : 1 Acid-test ratio : 1 Times interest earned Profit margin on sales % Asset turnover times Inventory turnover times Click if you would like to Show Work for this question: Open Show Work
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Selected Financial Ratios
Sandhill Inc.
Current
Industry
Average
2020
2019
Current ratio
1.62
1.63
1.56
Acid-test ratio
0.63
8.48
0.61
0.66
Times interest earned
8.43
8.38
Profit margin on sales
13.13 %
12.03 %
12.93 %
Asset turnover
1.77
1.76
1.77
Inventory turnover
3.1
3.14
3.11
(a)
Calculate a new set of ratios for the fiscal year 2021 for Sandhill based on the financial statements presented. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.)
Current ratio
: 1
Acid-test ratio
: 1
Times interest earned
Profit margin on sales
%
Asset turnover
times
Inventory turnover
times
Click if you would like to Show Work for this question: Open Show Work
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