The following information is taken from records of ABC Company:

Items	Amount
Account receivables	30000
Inventory	80000
Cash	10000
Prepaid expense	6000
Equipment’s	60000
Land	100000
Building	40000
Wages payable	5000
Account payables	30000
Notes payable	25000
Long term liabilities	70000
Owners’ Equity	196000
Sales revenue	150000
Cost of goods sold	125000
Net income	25000

According to above information, answer the following questions:

1. The company’s gross profit margin is:

1. 60%
2. 55%
3. None of the above

2. The company’s net profit margin is:

1. 20%
2. 17%
3. 15%

3. The company’s return on assets is :

1. 10%
2. 12%
3. 8%

4. The company’s return on equity is :

1. 13%
2. 15%
3. 11%

5. The company’s net working capital is:

1. 60000
2. 196000
3. 66000

6. The company’s current ratio is:

1. 2.1 times
2. 1.5 times
3. 2.5 times

7. The company’s Quick ratio is:

1. 1 times
2. .9 times
3. .7 times

8. The company’s debt to equity is:

1. 25%
2. 36%
3. 50%

9. The company’s liability to assets is:

1. 40%
2. 50%
3. 60%

10. The company’s Equity to assets is:

1. 50%
2. 60%
3. 70%

Answer rating: 100% (QA)

Analyzing ABC Companys Financial Performance Profitability Gross Profit Margin Sales Revenue Cost of ... View the full answer