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Use the following selected data from Success Systems\' income statement for the

ID: 2482171 • Letter: U

Question

Use the following selected data from Success Systems' income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below: computer services revenue, $27,590; net sales (of goods), $18,621; total sales and revenue, $46,211; cost of goods sold, $12,212; net income, $19,134; quick assets, $91,736; current assets, $96,832; total assets, $118,920; current liabilities, $1,135; total liabilities, $1,135; and total equity, $117,785.

Use the following selected data from Success Systems' income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below: computer services revenue, $27,590; net sales (of goods), $18,621; total sales and revenue, $46,211; cost of goods sold, $12,212; net income, $19,134; quick assets, $91,736; current assets, $96,832; total assets, $118,920; current liabilities, $1,135; total liabilities, $1,135; and total equity, $117,785.

da fiom Sucess Systems income Use the following selected data from Success Systems' income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below computer services revenue, $27,590, net sales (of goods), $18,621; total sales and revenue, $46,211; cost of goods sold, $12,212; net income, $19,134; quick assets, $91,736; current assets, $96,832, total assets $118,920 current liabilities, $1,135; total liabilities, $1,135; and total equity, $117,785. Required 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. (Round your answers to 1 decimal place.) With service revenue Without service revenue Gross margin ratio Net profit margin ratio 2 Compute the curent ratio and acidtest ratio. (Round your answers to 1 decimal place.) Current ratio Acid-test ratio

Explanation / Answer

Net Profit Margin = Net Income/Total Sales =19134/46211 =41.41%

Current Ratio= CurrentAssets/Current Liabilities =96832/1135=85.31

Acid test Ratio =Quick Assets/Current Liabilities =91736/1135 =80.82

Debt Equity Ratio= Debt/Equity

here Debt= 0 hence Deb Equity ratio is also Zero

Current Assets Ratio=Current Assets/Total Assets =96832/118920 =81.42%

Longterm Assets Ratio= Longterm Assets/Total Assets = (118920-96.832)/118920 =18.58%

With Service Revenue Without Service revenue Gross Margin Ratio (46211-12212)/46211=73.57% (18621-12212)/18621=34.42%
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