BUSI 320 Comprehensive Problem 1 Version SUMMER Use the following information to answer the questions below: note: all sales are credit sales 2019 900,000 $ 400,000 500,000 300,000 2020 990,000 460,000 530,000 315,000 Income Stmt info: Sales S less Cost of Goods Sold: Gross Profit Operating Expenses Earnings before Interest & Taxes Interest exp earnings before Taxes Taxes Net Income $ 200,000 20,000 180,000 54,000 126,000 $ 215,000 25,000 190,000 57,000 133,000 Balance Sheet info: Cash Accounts Receivable Inventory Total Current Assets Fixed Assets (Net) Total Assets 12/31/2019 50,000 $ 80,000 $ 100,000 $ 12/31/2020 60,000 120,000 120,000 300,000 330,000 630,000 S $ $ 230,000 $ 300,000 530,000 $ $ Current Liabilities Long Term Liabilities Total Liabilities Stockholder's Equity $ $ $ $ 150,000 $ 170,000 $ 320,000 $ 210,000 140,000 200,000 340,000 290,000 630,000 Total Liab & Equity: 530,000 $ Getting Better or Getting Worse? 2019 2020 Avg Ratios Profit Margin Current Ratio Quick Ratio Return on Assets Debt to Assets Receivables turnover Avg. collection period* Inventory Turnover** Return on Equity Times Interest Earned "Good" or "Bad" 2020 compared Industry to Industry Avg 0.08 1.80 1.12 0.18 0.50 12.00 22.10 10.20 0.16 6.15 *Assume a 360 day year **Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use)