Describes the firm profitability from the following data. Income Statement Data Net Sales $1,500,000 $1,200,000 Cost of

Describes the firm profitability from the following data.

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Income Statement Data Net Sales $1,500,000 $1,200,000 Cost of Goods Sold Gross Profit 934.000 $ 566,000 $ 459,000 Operating Expense 376.000 Operating Income $ 190,000 Other Expense (interest) Earnings Before Income Tax Income Taxes 66.000 Net Income $109,000 Dividends Paid 48.000 2020 15.000 741,000 277.000 $ 182,000 12.000 $ 175,000 71.000 Balance Sheet Data Assets 2021 Cash $ 30,000 $ 10,000 Receivables (net) 130,000 90,000 113,000 Inventory 170,000 Buildings, and Equipment (net) 650,000 Intangible Assets Total Assets $1.000.000 $ 99,000 42.000 20,000 20.000 $780.000 Liabilities and Stockholders' Equity Trade Notes and Accounts Payable Miscellaneous Current Liabilities 5% Bonds Payable 300,000 Common Stock. $10 Par Debt to equity ratio Gross Profit margin 2021 2020 Note: Market price of stock end-of-cach year. Required: Required: Compute the following ratios for both years. 1. Current ratio 2 Quick ratio $170,000 2021 2020 $ 100,000 $40,000 50,000 11,000 240,000 100,000 100,000 Additional Paid-In Capital $1,000 $1,000 Retained Earnings 399,000 338.000 Total Liabilities and Stockholders' Equity $1,000,000 $780,000 547,000 $81 $68 Inventory turnover in days Average Collection Period Average payment period (assume purchases 60% of sale for each year) Total asset turnover 7. Debt ratio 10 Operating Profit Margin 11. Net profit margin 12. Return on assets Is Return on equity Describe the firm's profitability trend based on data of last two years. Income Statement Data Net Sales $1,500,000 $1,200,000 Cost of Goods Sold Gross Profit 934.000 $ 566,000 $ 459,000 Operating Expense 376.000 Operating Income $ 190,000 Other Expense (interest) Earnings Before Income Tax Income Taxes 66.000 Net Income $109,000 Dividends Paid 48.000 2020 15.000 741,000 277.000 $ 182,000 12.000 $ 175,000 71.000 Balance Sheet Data Assets 2021 Cash $ 30,000 $ 10,000 Receivables (net) 130,000 90,000 113,000 Inventory 170,000 Buildings, and Equipment (net) 650,000 Intangible Assets Total Assets $1.000.000 $ 99,000 42.000 20,000 20.000 $780.000 Liabilities and Stockholders' Equity Trade Notes and Accounts Payable Miscellaneous Current Liabilities 5% Bonds Payable 300,000 Common Stock. $10 Par Debt to equity ratio Gross Profit margin 2021 2020 Note: Market price of stock end-of-cach year. Required: Required: Compute the following ratios for both years. 1. Current ratio 2 Quick ratio $170,000 2021 2020 $ 100,000 $40,000 50,000 11,000 240,000 100,000 100,000 Additional Paid-In Capital $1,000 $1,000 Retained Earnings 399,000 338.000 Total Liabilities and Stockholders' Equity $1,000,000 $780,000 547,000 $81 $68 Inventory turnover in days Average Collection Period Average payment period (assume purchases 60% of sale for each year) Total asset turnover 7. Debt ratio 10 Operating Profit Margin 11. Net profit margin 12. Return on assets Is Return on equity Describe the firm's profitability trend based on data of last two years.

Answer rating: 100% (QA)

1 Current Ratio Current RatioCurrent Assets Current Liabilities For 2021 Current Ratio 30000130000170000 10000050000 330000 150000 22 For 2020 Current Ratio 1000090000113000 4000011000 213000 51000 41... View the full answer