RIVERSIDE SWEETS

Balance Sheet

June $30,2018$ and $2019$

$20182019$

Assets

Current Assets:

Cash $ $125,000$ $ $119,000$

Short$-$term Investment $685,000650,000$

Accounts Receivable $225,000198,000$

Merchandise Inventory $65,00070,000$

Other Current Assets $195,000191,000$

Total Current Assets $1,295,0001,228,000$

Property. Plant, and Equipment, Net $875,000832,000$

Total Assets $$2,170,000$ $$2,060,000$

Liabilities

Current Liabilities:

Accounts Payable $ $265,000$ $ $251,750$

Accrued Liabilities $641,000725,523$

Total Current Liabilities $906,000977,273$

Long$-$term Liabilities

Bonds Payable $250,000150,000$

Mortgage Payable $150,000175,000$

Total Long$-$term Liabilities $400,000325,000$

Total Liabilities $1,306,0001,302,273$

Stockholders' Equity

Common Stock, $$1$ par, $225,000$ shares

Issued and outstanding $225,000225,000$

Paid$-$in$-$Capital in Excess of Par $58,00058,000$

Retained Earnings $581,000474,727$

Total Stockholders' Equity $864,000757,727$

Total Liabilities and Stockholders' Equity $$2,170,000$ $$2,060,000$

RIVERSIDE SWEETS

Income Statement

Year Ended June $30,2019$

Net Sales Revenue $2,800,000$

Cost of Goods Sold $1,551,600$

Gross Profit $1,248,400$

Operating Expenses $450,540$

Operating Income $797,860$

Other Income and $($Expenses$)$:

Interest Expense $(15,000)$

Income Before Income Taxes $782,860$

Income Tax Expense $153,529$

Net Income $$629,331$

Requirements

Using the financial statements shown above

Compute the following ratios: Be sure to show the formula used for each ratio.

$1$ Working Capital

$2$ Current Ratio

$3$ Acid$-$Test $($Quick$)$ Ratio

$4$ Cash Ratio

$5$ Accounts Receivable Turnover

$6$ Days' Sale in Receivables

$7$ Inventory Turnover

$8$ Days' Sales in Inventory

$9$ Gross Profit Percentage

$10$ Debt Ratio

$11$ Profit Margin Ratio

$12$ Asset turnover ratio