A. FINANCIAL STATEMENTS AND RATIOS: 50 Points Here is a list of accounts for Denison Solutions Inc. as at Dec. 31, 2018. Bank Term Loan 42,000 Salaries & other Operating Expenses 34,000 Prepaid Insurance 2,000 Depreciation Expense 5,000 Cash 3,000 Sales 305,000 Income Tax 8,000 Wages Payable 13,000 Inventory 36,000 Equipment 72,000 Administrative Expenses 13,000 Accounts Receivable 14,000 Cost of Goods Sold 232,000 Accounts Payable 21,000 Interest Expense 6,000 Accumulated Depreciation (Equipment) 29,000 Other data: - $5,000 in Dividends were declared and paid in 2018 - Common Stock as at Dec. 31, 2017: $15,000 - Retained Earnings as at Dec. 31, 2017: $ 5,000 

REQUIRED: 1. Prepare an Income Statement, Balance Sheet, and Statement of Owners' Equity as of Dec. 31, 2018 2. Calculate the following ratios, explaining the significance of each: a. Current Ratio b. Quick Ratio c. Net Profit Margin d. Return on Assets e. Debt to Equity f. Receivables Turnover and Average Collection Period g. Times Interest Earned Ratio h. Accounts Payable Turnover and Average Payment Period

Answer rating: 100% (QA)

Financial Statements Income Statement Amount Sales 305000 Cost of Goods Sold 232000 Gross Profit 730... View the full answer