Answer the folowing sections showing your steps : 1-e, 1-f, 1-g, 1-h, 2-e. The t

Question

Answer the folowing sections showing your steps : 1-e, 1-f, 1-g, 1-h, 2-e.

The tollowing information applies to the questions displayed below. Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC Income Statement For the Year Ended December 31, 2020O Revenues Service revenue (clinic, racing, TEAM) Sales revenue (MU watches) $547,000 122,000 lotal revenues $669,000 Expenses Cost of goods sold (MU watches) Operating expenses Depreciation expense Interest expense Income tax expense 72,000 304,476 52,000 29,924 58,200 Total expenses 516,600 Net income $152,400O

Explanation / Answer

1-e) Current Ratio -

1-f) Quick Ratio -

1-g) The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity

1-h) Time interest earned ratio -  measure of a company's ability to honor its debt payments.

RoE measures the ability of a firm to generate profits from its shareholders investments in the company.

- used to measure Company's liquidity or ability to pay short term liabilities Current ratio = Current Assets = 406432 = 5.70 Current Liabilities 71270 Current Assets Cash 3,27,832 Accounts Receivable 48,000 Inventory 17,300 Other current assets 13,300 4,06,432 Current liabilities Accounts payable 12,300 Interest payable 770 Income tax payable 58,200 71,270

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