SERIAL PROBLEM Business Solutions This serial problem began

SERIAL PROBLEM Business Solutions (This serial problem began in Chapter I and continues through most of the book. 15 previous chapter seg- ments were not completed, the serial problem can begin at this point) P3 SP 13 Use the following selected data from Business Solutions\'s income statement for the three months ended March 31, 2018, and from its March 31, 2018, balance sheet to complete the requirements below: computer services revenue, $25.307; net sales (of goods), $18,693; total sales and revenue, $44,000: cost of goods sold, $14,052; net income, $18,833: quick assets, $90,924; current assets, $95.568; total assets, $120,268; current liabilities, $875; total liabilities, $875; and total equity. $119,393. Required 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio (round the percent to one decimal), 2. Compute the current ratio and acid-test ratio (round to one decimal) 3. Compute the debt ratio and equity ratio (round the percent to one decimal) 4. What percent of its assets are current? What percent are long term? (Round the percents to one decimal.)

Solution

1 Gross Margin Ratio Gross Margin $       4,641.00 = 24.8% (Without Service Revenue) Net Sales $     18,693.00 Gross Margin Ratio Gross Margin $ 29,948.00 = 68.06% (With Service Revenue) Total Sales $     44,000.00 Net Profit Margin Ratio Net Profit $     18,833.00 = 42.8% Total Sales $     44,000.00 2 Current Ratio Current Assets $     95,658.00 = 109.3 Current Liabilities $           875.00 Acid Test Ratio Quick Assets $     90,924.00 = $             103.9 Current Liabilities $           875.00 3 Debt Ratio Total Debt $           875.00 = 0.01 Total Asset $ 1,20,268.00 Equity Rato Total Equity $ 1,19,393.00 = 0.99 Total Assets $ 1,20,268.00 4 % of current asset Current Asset $     95,568.00 = 79% Total Assets $ 1,20,268.00 % of long term asset 100 - % of current asset = 21%