e he a atement shws gros sules f tes us the neurest hundredt

e he a atement shws gros sules f tes (us the neurest hundredth on net sales (to $ 39.000 109000 150.000 5194 K Net %ales Cost of goods sold id expenses f\'Yent and equipment (net) 48300of goods sold32855 487.,00O Operating expenses 209 300 nts Pnt liabilities 46,000 43.000 225,000 325.000 3500 32.400 Accounts payable Income taxes Other current -term liabilities 41 800 stockst hundredth or hundredth percent as needed)y lculate (to nearest Current ratio. b. Quick ratio. 379 c. Average day\'s co Total debt to total assets. Profit margin on net sales. ale Group lost S18.4 million in e. Return on equity. . Asset turnove

Solution

a.Current ratio = Current assets/Current Liabilities

= cash + Accounts Receivables+Inventory+Prepaid Expenses/Accounts payable+Other Current Liabilities

=346,000/89,000 = 3.89

b.Quick Ratio = Quick Assets/Current Liabilities

= cash + Accounts Receivables/Accounts payable+Other Current Liabilities

=148,000/89,000 = 1.66

d. Total Debt to Assets ratio = Total Debt/Total Assets

=Long term liabilities/Current Assets+Fixed assets

=225,000/833,000 = 0.27 or 27%

Return on Equity = Earnings for Equity/Equity Capital

=41,800/325,000 = 12.86%

Profit Margin on Net Sales = Profit/Sales

=Net Sales - COGS- Operating Expense/Net Sales

=87,700/825,000 = 10.63%

Asset Turnover ratio = Net Sales/Total Assets

= 825,000/833,000 = 0.99