Fenn, Ran d26cc . Yahoo Search × Correct wconnect.mheducation.com/flow/connect.h

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Fenn, Ran d26cc . Yahoo Search × Correct wconnect.mheducation.com/flow/connect.html D Mario s 15-17 Empee Big Farm Funny pictures theVideomate Hot Game D Facebook ightningnewtab Saved Help Sew March 31. 2018, balance sheet to complete the requirements below computer services revenue. 529.403, net sales (of goods) $19.308 total sales and revenue. $48.71t,cost of goods sold, $15.866: net income. $18.633, quick assets, $91784, current assets S95 160 total assets, St18.040, current liablities, $815; total liabilities, $815, and total equity, $117.225 Required: 1. Compute the gross margin ratio (ooth with and without services revenue) and net profit margin ratio in ratio (both with and without services revenue) and net profit margin ratio 2. Compute the current ratio and acid-test ratio 3. Compute the debt ratio and equity ratio 4. What percent of its assets are current? What percent are long term? Complete this question by entering your answers in the tabs below. Rea 1 Rea 2 Rea 3 Req 4 Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. (Round your percentage answers to 1 decimal place.) Gross margin ratio Nel proft margin rato Req 2 >

Explanation / Answer

Answer of Part 1:
Gross Margin Ratio = Gross Margin / Net Sales * 100

With Service Revenue:
Gross Margin = Net Sales – Cost of Goods Sold
Gross Margin = $48,711 - $15,866
Gross Margin = $32,845

Gross Margin Ratio = 32,845 / 48,711 * 100
Gross Margin Ratio = 67.4%

Net Profit Margin = Net Income / Net Sales * 100
Net Profit Margin =18,633 / 48,711 * 100
Net Profit Margin = 38.3%

Without Service Revenue:
Gross Margin = Net Sales – Cost of Goods Sold
Gross Margin = $19,308 - $15,866
Gross Margin = $3,442

Gross Margin Ratio = 3,442 / 19,308 * 100
Gross Margin Ratio = 17.8%

Net Profit Margin = Net Income / Net Sales * 100
Net Profit Margin =18,633 / 19,308 * 100
Net Profit Margin = 96.5%

Answer of Part 2:
Current Ratio = Current Assets – Current Liabilities
Current Ratio = $95,160 / $815
Current Ratio = 116.8:1

Acid Test Ratio = Quick Assets / Current Liabilities
Acid Test Ratio = $91,784 / $815
Acid Test Ratio = 112.6:1

Answer of Part 3:
Debt Ratio = Total Debt / Total Assets
Debt Ratio = 815 / 118,040
Debt Ratio = 0.7%

Equity Ratio = Total Equity / Total Assets
Equity Ratio = $117,225 / $118,040
Equity Ratio =99.3%

Answer of Part 4:
Current Assets (in %) = Current Assets / Total Assets * 100
Current Assets (in %) = 95,160 / 118,040 * 100
Current Assets (in %) = 81%

Long Term (in %) = (Total Assets – Current Assets) / Total Assets * 100
Long Term (in %) = (118,040 – 95,160) / 118,040 * 100
Long Term (in %) = 22,880 / 118,040 * 100
Long Term (in %) = 19%

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