Ratif Analysis 5-36. Refer to the following financial statements of Bongo Comics Group. Bongo Comics Group...

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Ratif Analysis 5-36. Refer to the following financial statements of Bongo Comics Group. Bongo Comics Group Income Statements (In 000's, except EPS) Net Sales Cost of Goods Sold Gross Profit Selling and Admin. Expenses Operating Profit Interest Expense Income before Tax Income Tax (T- 35%) Net Income Dividends Paid 2019 $2,100 681 1,419 610 809 798 279 $ 519 $0 2020 $3,051 995 2,056 705 1,351 75 1,276 447 $ 829 $ 0 2021 $3,814 1,040 2,774 964 1,810 94 1,716 601 $1,115 $0 Increase in Retained Earnings Common Shares Outstanding EPS Assets: Cash and Equivalents Accounts Receivable Inventories Bongo Comios Group Balance Sheets (In 000's) as of Dec. 31, Years Ended: 2019 2020 Other Current Assets Total Current Assets Prop. Plant, and Equip., Gross Less Accum. Depr. Prop. Plant, and Equip., Net Other Assets Total Assets Liabilities and Equity: Accounts Payable Short-Term Debt Total Current Liabilities Long-Term Debt Total Liabilities Common Stock Retained Earnings 519 2,500 $ 0.21 Total Equity Total Liabilities and Equity $ 224 381 307 69 981 1,901 (81) 1,820 58 $2,859 $ 210 35 245 17 262 2,062 535 829 2,500 $ 0.33 2,597 $2,859 $ 103 409 302 59 873 3,023 (82) 2,941 101 $3,915 $405 39 444 45 489 2,062 1,364 3,426 $3,915 1,115 2,500 $ 0.45 2021 $ 167 564 960 29 1,720 3,742 (346) 3,396 200 $5,316 $ 551 72 623 152 75 2,062 2,479 4,541 $5,316 a. How long, on average, was Bongo Comics Group taking to collect on its receivable accounts in 2021? (Assume all of the company's sales were on credit.) b. Was Bongo Comics Group more or less profitable in 2021 than in 2019? Justify your answer by examining the net profit margin and return on assets ratios. c. Was Bongo Comics Group more or less liquid at the end of 2021 than it was at the end of 2019? Justify your answer using the current and quick ratios. Ratif Analysis 5-36. Refer to the following financial statements of Bongo Comics Group. Bongo Comics Group Income Statements (In 000's, except EPS) Net Sales Cost of Goods Sold Gross Profit Selling and Admin. Expenses Operating Profit Interest Expense Income before Tax Income Tax (T- 35%) Net Income Dividends Paid 2019 $2,100 681 1,419 610 809 798 279 $ 519 $0 2020 $3,051 995 2,056 705 1,351 75 1,276 447 $ 829 $ 0 2021 $3,814 1,040 2,774 964 1,810 94 1,716 601 $1,115 $0 Increase in Retained Earnings Common Shares Outstanding EPS Assets: Cash and Equivalents Accounts Receivable Inventories Bongo Comios Group Balance Sheets (In 000's) as of Dec. 31, Years Ended: 2019 2020 Other Current Assets Total Current Assets Prop. Plant, and Equip., Gross Less Accum. Depr. Prop. Plant, and Equip., Net Other Assets Total Assets Liabilities and Equity: Accounts Payable Short-Term Debt Total Current Liabilities Long-Term Debt Total Liabilities Common Stock Retained Earnings 519 2,500 $ 0.21 Total Equity Total Liabilities and Equity $ 224 381 307 69 981 1,901 (81) 1,820 58 $2,859 $ 210 35 245 17 262 2,062 535 829 2,500 $ 0.33 2,597 $2,859 $ 103 409 302 59 873 3,023 (82) 2,941 101 $3,915 $405 39 444 45 489 2,062 1,364 3,426 $3,915 1,115 2,500 $ 0.45 2021 $ 167 564 960 29 1,720 3,742 (346) 3,396 200 $5,316 $ 551 72 623 152 75 2,062 2,479 4,541 $5,316 a. How long, on average, was Bongo Comics Group taking to collect on its receivable accounts in 2021? (Assume all of the company's sales were on credit.) b. Was Bongo Comics Group more or less profitable in 2021 than in 2019? Justify your answer by examining the net profit margin and return on assets ratios. c. Was Bongo Comics Group more or less liquid at the end of 2021 than it was at the end of 2019? Justify your answer using the current and quick ratios.

Answer rating: 100% (QA)

The provided images include the income statements and balance sheets of Bongo Comics Group for the years ending 2019 2020 and 2021 To address the questions you may have about this company we should ca... View the full answer