1. Using the data from the Balance Sheet at 2/28 and the Profit & Loss 1/1-2/28 statement, calculate the financial ratios listed on the attached page.

If both current assets and current liabilities were increased by $8,000, would the current ratio increase, decrease, or stay the same ?

Is Math Revealed more or loess solvent than a similar operation with a 70% debt to assets ratio?

By how much would you expect the gross profit from product sales to increase (in dollars) if income from the product sales increased by $3,000? (Income increased because the company sold more units.)

Which current asset does Math Revealed appear to be doing a better job of managing Accounts Receivable or Inventory?

Liquidity
	Current Ratio
	Quick Ratio
	Working Capital in dollars
Activity
				NOTE: Assume credit sales for the period totaled $12,381
*	A/R Turnover
*	Inventory Turnover
	Days in A/R
	Days in Inventory
Solvency
	Debt to Assets
	Debt to Equity
Profitability
	Gross Profit Margin			Calculate the gross profit on product sales only
	Net Profit Margin
	Return on Equity

Balance Sheet As nf Fahruarv 28 202.3 Balance Sheet As of February 28, 2023 \begin{tabular}{lr} \hline & TOTAL \\ \hline Long-Term Liabilities & \\ 280 Note Payable - Richard Smith & 2,500.00 \\ \hline Total Long-Term Liabilities & $2,500.00 \\ Total Liabilities & $5,287.02 \\ Equity & 1,500.00 \\ 300 Common Stock & 2,000.00 \\ 345 Dividends & 4,610.00 \\ 350 Retained Earnings & 0.00 \\ Opening Balance Equity & 11,554.93 \\ Net Income & $15,664.93 \\ Total Equity & $20,951.95 \\ \hline TOTAL LIABILITIES AND EQUITY & 1.9 \\ \hline \hline \end{tabular} Profit and Loss January 2022 - February 2023 Mondey, Cchober 17, 2022 11:23 FM GH-10410