Solve a. Current ratio _________________________ b. Quick ratio ________________
ID: 2767124 • Letter: S
Question
Solve
a. Current ratio _________________________
b. Quick ratio _________________________
c. Inventory turnover _________________________
d. Accounts receivable turnover _________________________
e. Gross profit margin _________________________
f. Operating profit _________________________
g. Net Profit _________________________
h. Return on assets _________________________
I. Return on equity _________________________
Ashline Industries 2000 Balance Shest Curent iablities $125 Accounits payable Accounts recevable $500 Acoued labilities $180 $700 115 $2.825 Total labilises and equity 2825 $000 Total cument labilities Inventory Total oument assets Faxed assers Total anserts $1,425 Long-term debt $1,400 Saliders equity Ashline Industries 2000 Income Statememt 1900 1250 650 445 NET SALES REVENUE COST OF GOODS sOLD GROSS PROFIT TOTAL OPERATING EXPENSES OPERATING PROFIT OTHER INCOME AND EXPENSES EARNINGS BEFORE TAXES TAXES NET INCOME 125 80 65 15Explanation / Answer
a. Current Ratio Current Assets/ Current Liabilities 1425/880 1.62 b Quick Ratio Current Assets- Inventory-Prepaid Expenses/ Current Liabilities 1425-800/880 625/880 0.71 c Inventory Turnover Cost of Goods sold/ Average Inventory 1250/800 1.56 d Accounts Receivable Turnover Credit sales/ Accounts Receivable 1900/500 3.8 e Gross Profit Margin Gross Profit*100/ Sales 650*100/1900 34.21%.
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