Calculate one ratio from each of the following groups (three ratios total) for 2015 for smart touch
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Calculate one ratio from each of the following groups (three ratios total) for 2015 for smart touch learning: ability to pay current liabilities, current ratio, cash ratio, ability to pay long-term debt, debt ratio, debt-to-equity ratio, profitability profit margin ratio, rate of return on total assets, what do these results tell you? How will you use this information in planning and decision making?
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Current Assets: Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory SMART TOUCH LEARNING Balance Sheet December 31, 2016 and 2015 Prepaid Expenses Total Current Assets Current Liabilities: Long-term Investments Property, Plant, and Equipment, Net Total Assets Accounts Payable Accrued Liabilities Notes Payable Total Current Liabilities Long-term Liabilities Total Liabilities Common Stock Retained Earnings Assets Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity 2016 $ 29,000 114,000 113,000 6,000 262,000 18,000 507,000 $ 787,000 $ 73,000 27,000 42,000 142,000 289,000 431,000 186,000 170,000 356,000 $ 787,000 2015 $ 32,000 85,000 111,000 8,000 236,000 9,000 399,000 $ 644,000 $ 68,000 31,000 27,000 126,000 198,000 324,000 186,000 134,000 320,000 $ 644,000 SMART TOUCH LEARNING Income Statement Years Ended December 31, 2016 and 2015 Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses): Interest Revenue Interest Expense Total Other Revenues and (Expenses) Income Before Taxes Income Tax Expense Net Income 2016 $ 858,000 513,000 345,000 126,000 118,000 244,000 101,000 4,000 (24,000) (20,000) 81,000 33,000 $ 48,000 2015 $ 803,000 509,000 294,000 114,000 123,000 237,000 57,000 (14,000) (14,000) 43,000 17,000 $ 26,000 Current Assets: Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory SMART TOUCH LEARNING Balance Sheet December 31, 2016 and 2015 Prepaid Expenses Total Current Assets Current Liabilities: Long-term Investments Property, Plant, and Equipment, Net Total Assets Accounts Payable Accrued Liabilities Notes Payable Total Current Liabilities Long-term Liabilities Total Liabilities Common Stock Retained Earnings Assets Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity 2016 $ 29,000 114,000 113,000 6,000 262,000 18,000 507,000 $ 787,000 $ 73,000 27,000 42,000 142,000 289,000 431,000 186,000 170,000 356,000 $ 787,000 2015 $ 32,000 85,000 111,000 8,000 236,000 9,000 399,000 $ 644,000 $ 68,000 31,000 27,000 126,000 198,000 324,000 186,000 134,000 320,000 $ 644,000 SMART TOUCH LEARNING Income Statement Years Ended December 31, 2016 and 2015 Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses): Interest Revenue Interest Expense Total Other Revenues and (Expenses) Income Before Taxes Income Tax Expense Net Income 2016 $ 858,000 513,000 345,000 126,000 118,000 244,000 101,000 4,000 (24,000) (20,000) 81,000 33,000 $ 48,000 2015 $ 803,000 509,000 294,000 114,000 123,000 237,000 57,000 (14,000) (14,000) 43,000 17,000 $ 26,000
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Ability to Pay Current Liabilities Current Ratio This ratio connotes the relation between current assets and current liabilities and elucidates the sh... View the full answer
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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