Use the following selected data from Success Systems income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below: computer services revenue, $25,160; net sales (of goods), $18,693; total sales and revenue, $43,853; cost of goods sold, $14,052; net income, $18,686; quick assets, $100,205; current assets, $105,209; total assets, $129,909; current liabilities, $875; total liabilities, $875; and total equity, $129,034. Required 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio (round the percent to one decimal). 2. Compute the current ratio and acid-test ratio (round to one decimal). 3. Compute the debt ratio and equity ratio (round the percent to one decimal). 4. What percent of its assets are current? What percent are long term (round the percent to one decimal)?

Problem 3 - Analyzing the Financial Statements

3.1

Table 4

Margin Analyses

3.1	Gross Margin Ratio With Computer Service Revenue
	Gross Margin Ratio Without Computer Service Revenue
	Net Profit Margin Ratio

3.2:

Table 5

Liquidity and Efficiency Ratio Analyses

3.2	Current Ratio
	Acid-Test Ratio

3.3

Table 6

Solvency Ratio Analyses

3.3	Debt Ratio
	Equity Ratio

3.4

Table 7

Margin Analyses

3.4	% Current Assets 81.0
	% Long Term Assets