Problem 2: Ratios Ratio Formula Numbers Answer 1. Income Statement Sales Cost of Goods Sold Gross Profit Operating Expenses Depreication Expense Net Income Current Ratio CA CL 375,000 (200,000) 175,000 (60,000) (15,000) 100,000 2. Debt Ratio Total Liab Total Assets 2020 2019 3. Return on Sales NI Sales Return on Assets NI AVG Assets Balance Sheet Assets Cash Accounts Receivable Inventory Prepaid Insurance Current ASSETS Equipment Accum Depreciation Total Assets 160,000 40,000 95,000 15,000 310,000 135,000 (45,000) 400,000 100,000 52,000 4. 75,000 8,000 235,000 5 105,000 (30,000) 310,000 6. Return on Equity NI Avg Equity Gross Profit Margin GP Sales 7 Accts Ree Turnover Liabilities Acounts Payable Accrued Liabilities Current Liabilities LT Loans Payable Total Liabilities 2020 30,000 35,000 65,000 45,000 110,000 2019 25,000 25.000 50,000 50,000 100,000 Sales Avg Avg Rec 8. Acet Rec in Days 365 Turn Rate 9. Inventory Turnover Stockholders' Equity Common Stock Retained Earnings English (United States) CGS Avg Iny 100,000 190,000 30.000 180,000 Focus ords