Question: solve this small questions AnalysIS OT economic activity Exercise 3 Win's Companies, a home improvement store chain, reported the following summarized figures: Net Sales Cost

 solve this small questions AnalysIS OT economic activity Exercise 3 Win's

solve this small questions

AnalysIS OT economic activity Exercise 3 Win's Companies, a home improvement store chain, reported the following summarized figures: Net Sales Cost of Goods Sold Interest Expense All Other Expenses Net Income WIN'S COMPANIES Income Statement Years Ended May 31, 2019 and 2018 2019 $50,200,000 28,400,000 500,000 $ 5,800,000 15.500.000 2018 $43,800,000 $29,300,000 140,000 8,400,000 5.960.000 WIN'S COMPANIES Balance Sheet May 31, 2019 and 2018 2019 2018 Liabilities 2,000,000 900,000 Total Current Liabilities 28,000,000 9,000,000 Long-term Liabilities 7,400,000 5,300,000 Total Liabilities 6,900,000 8,200,000 Stockholders' Equity 10,000,000 1,800,000 Common Stock 54,300,000 25,200,000 Retained Earnings 34,000,000 26,000,000 Total Equity 88.300.000 51.200.000 Total Liabilities an Equity 2019 33,000,000 12,300,000 45,300,000 Assets Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets All Other Assets Total Assets 2018 13,100,000 10,600,000 23,700,000 11,000,000 32,000,000 43,000,000 88.300.000 11,000,000 16,500,000 27,500,000 51.200.000 Win's has 500,000 common shares outstanding during 2019. Evaluating current ratio Requirements 1. Compute Win's Companies' current ratio at May 31, 2019. 2. Did Win's Companies' current ratio improve, deteriorate, or hold steady during 2019? Computing inventory, gross profit, and receivables ratios 3. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Win's Companies for 2019. 4. Compute days' sales in receivables during 2019. Round dollar amounts to three decimal places. Assume all sales were on account. 5. What do these ratios say about Win's Companies' ability to sell inventory and collect receivables? Measuring ability to pay liabilities 6. Compute the debt ratio and the debt to equity ratio at May 31, 2019 for Win's Companies. 7. Is Win's ability to pay its liabilities strong or weak? Explain your reasoning

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