Below comparative data for Sigma Company presented as follows (amounts in S): December 31, 2020 December...

 

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Below comparative data for Sigma Company presented as follows (amounts in S): December 31, 2020 December 31, 2019 S30,000 TT Cash $25,000 35,000 120,000 95,000 110,000 70,000 50,000 80,000 Short-term investments 18,000 Receivables (net) Inventories Equipment Account payable Taxes payable Bonds payable 80,000 65,000 75,000 60,000 30,000 90,000 During 2020, sales were $830,000 and sales return $20,000, cost of goods sold was $615,000 and net income $210,000. Instructions: Compute and interpret the following ratios at December 31, 2020: (a) Current ratio (b) Profit Margin (c) Receivables tumover in days (d) Inventory turnover in days (e) return on assets Below comparative data for Sigma Company presented as follows (amounts in S): December 31, 2020 December 31, 2019 S30,000 TT Cash $25,000 35,000 120,000 95,000 110,000 70,000 50,000 80,000 Short-term investments 18,000 Receivables (net) Inventories Equipment Account payable Taxes payable Bonds payable 80,000 65,000 75,000 60,000 30,000 90,000 During 2020, sales were $830,000 and sales return $20,000, cost of goods sold was $615,000 and net income $210,000. Instructions: Compute and interpret the following ratios at December 31, 2020: (a) Current ratio (b) Profit Margin (c) Receivables tumover in days (d) Inventory turnover in days (e) return on assets

Answer rating: 100% (QA)

Curvent AccatsCuirent liabilitiand 275000170000 a Curorent Ratio 162 tmes Cuv... View the full answer