Use the information for Purrfect Pets below to calculate each of the required numbers. Assume that expenses include taxes and the company has no other sources of revenue. December 31, 2019 December 31, 2020 Current Assets $186,600 Current Assets $237,300 Current Liabilities 95,300 Current Liabilities 91,400 Contributed Capital 69,100 Contributed Capital 80,200 Retained Earnings 27,700 Retained Earnings 81,900 During the period 1/1/019 to 12/31/19 During the period 1/1/20 to 12/31/20 Sales Revenue 178,400 Sales Revenue 202,500 Expenses 145,200 Expenses 134,200 Required: a. Determine the current ratio for the company for 2019 and 2020. Provide your answer in the space given below. 2019 2020 Current Ratio 2$ Based on your calculated result, answer the following question: Has Purrfect Pets' liquidity been increased or decreased in 2020? In the space provided below, enter "1" for increase, enter "-1" for decrease, enter "0" for no change. Your answer: b. Determine the net income for the company for 2019 and 2020. Provide your answer in the space given below. 2019 2020 Net Income $ $ Based on your calculated result, answer the following question: Has Purrfect Pets' profit been increased or decreased in 2020? In the space provided below, enter "1" for increase, enter "-1" for decrease, enter "0" for no change. Your answer: c. Determine the net profit margin ratio for the company for 2019 and 2020. Provide your answer in the space given below. 2019 2020 Net Profit Margin Ratio % Based on your calculated result, answer the following question: Has Purrfect Pets' profitability been increased or decreased in 2020? Your answer: (enter "1" for increase, enter "-1" for decrease, enter "0" for no change.)
Use the information for Purrfect Pets below to calculate each of the required numbers. Assume that expenses include taxes and the company has no other sources of revenue. December 31, 2019 December 31, 2020 Current Assets $186,600 Current Assets $237,300 Current Liabilities 95,300 Current Liabilities 91,400 Contributed Capital 69,100 Contributed Capital 80,200 Retained Earnings 27,700 Retained Earnings 81,900 During the period 1/1/019 to 12/31/19 During the period 1/1/20 to 12/31/20 Sales Revenue 178,400 Sales Revenue 202,500 Expenses 145,200 Expenses 134,200 Required: a. Determine the current ratio for the company for 2019 and 2020. Provide your answer in the space given below. 2019 2020 Current Ratio 2$ Based on your calculated result, answer the following question: Has Purrfect Pets' liquidity been increased or decreased in 2020? In the space provided below, enter "1" for increase, enter "-1" for decrease, enter "0" for no change. Your answer: b. Determine the net income for the company for 2019 and 2020. Provide your answer in the space given below. 2019 2020 Net Income $ $ Based on your calculated result, answer the following question: Has Purrfect Pets' profit been increased or decreased in 2020? In the space provided below, enter "1" for increase, enter "-1" for decrease, enter "0" for no change. Your answer: c. Determine the net profit margin ratio for the company for 2019 and 2020. Provide your answer in the space given below. 2019 2020 Net Profit Margin Ratio % Based on your calculated result, answer the following question: Has Purrfect Pets' profitability been increased or decreased in 2020? Your answer: (enter "1" for increase, enter "-1" for decrease, enter "0" for no change.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...
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Transcribed Image Text:Use the information for Purrfect Pets below to calculate each of the required numbers. Assume that expenses include taxes and the company
has no other sources of revenue.
December 31, 2019
December 31, 2020
Current Assets
$186,600 Current Assets
$237,300
Current Liabilities
95,300 Current Liabilities
91,400
Contributed Capital
69,100 Contributed Capital
80,200
Retained Earnings
27,700 Retained Earnings
81,900
During the period 1/1/019 to 12/31/19
During the period 1/1/20 to 12/31/20
Sales Revenue
178,400 Sales Revenue
202,500
Expenses
145,200 Expenses
134,200
Required:
a. Determine the current ratio for the company for 2019 and 2020. Provide your answer in the space given below.
2019
2020
Current Ratio
$
$
Based on your calculated result, answer the following question:
Has Purrfect Pets' liquidity been increased or decreased in 2020? In the space provided below, enter "1" for increase, enter "-1" for decrease,
enter "0" for no change.
Your answer:
b. Determine the net income for the company for 2019 and 2020. Provide your answer in the space given below.
2019
2020
Net Income
$
$
Based on your calculated result, answer the following question:
Has Purrfect Pets' profit been increased or decreased in 2020? In the space provided below, enter "1" for increase, enter "-1" for decrease, enter
"O" for no change.
Your answer:
c. Determine the net profit margin ratio for the company for 2019 and 2020. Provide your answer in the space given below.
2019
2020
Net Profit Margin Ratio
%
Based on your calculated result, answer the following question:
Has Purrfect Pets' profitability been increased or decreased in 2020?
Your answer:
(enter "1" for increase, enter "-1" for decrease, enter "0" for no change.)
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