Chapter 2, Problem 2.4E

Given below is AU Chiefs Company’s financial statements. Compute for the financial rations and showthe solutions in a sheet of paper.1. Expenses to sale ratio2. Return on assets3. Return on Equity4. Asset Turnover ratio   2020 2019 Cash 122,500 104,700 Accounts Receivable 90,650 80,550 Inventory 66,200 53,000 Prepaid Expense 85,450 106,000 Total Current Assets 364,800 344,250 Property, Plant and Equipment 925,000 786,350 TOTAL ASSETS 1,654,600 1,475,350       Total Current Liability 381,500 423,350 Long-term Liabilities 359,900 230,600 Mabini, Capital 913,200 821,400 Total Liability and Equity 1,654,600 1,475,350       Sales 1,047,050 1,151,755 Cost of Sales 322,750 355,025 Gross Profit 724,300 796,730 Selling Expenses 353,250 388,575 Administrative Expenses 128,150 140,965 Operating Income 242,900 267,190 Interest Income…

Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. BEAN SUPERSTOREComparative Balance SheetDecember 31, 2017, 2018, and 2019   2019 2018 2017 Assets       Cash $345,600    $330,460    $300,000    Accounts Receivable 65,000    60,000    60,000    Inventory 150,830    178,011    155,205    Equipment 100,465    101,202    103,085    Total Assets $661,895    $669,673    $618,290    Liabilities       Salaries Payable $90,200    $88,563    $84,209    Accounts Payable 70,000    71,670    69,331    Notes Payable 42,000    50,650    58,250    Equity       Common Stock 22,695    20,990    19,200    Retained Earnings 437,000    437,800    387,300    Total Liabilities and Equity $661,895    $669,673    $618,290      LEGUMES PLUSComparative Balance SheetDecember 31, 2017, 2018, and 2019   2019 2018 2017 Assets       Cash $407,000    $388,450    $356,367    Accounts Receivable…

You have just been hired as a financial manager for BEE Inc.  Management has provided you with the information below and has asked you to provide a brief explanation for each of the following questions.  Your answer must be a minimum of one sentence and no longer than two or three sentences.  One word answers or an answer of "good" or "bad" only will receive zero marks.     2021 2020 2019         Current ratio  .99 1.32 1.69         Total debt ratio 0.540 0.495 0.489         Profit Margin 0.10 0.11 0.14         Inventory Turnover 2.60 3.14 4.18   a.  Based on the results of the past three years, how is the company doing in regards to their ability to pay their short-term debts?  Please refer to the specific ratio you would point out to management that backs up your answer.    b. The benchmark industry average for the debt ratio is ,490.  What does this mean for BEE Inc.?    c. The benchmark industry average for the profit margin is .15.  What advice would you give…