2019: Profit Margin – Profit $1435 / Net Sales $38,464 = 0.037:1 OR 3.7% Working Capital – Current Assets $3406 - Current Liabilities $4291 = -885 Current Ratio – Current Assets $3406 / Current Liabilities $4291 = 0.79:1 OR $0.79 Current Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Current Liabilities $8781.50 = 0.26:1 OR 0.26 Average Current Liabilities Calculation: 4291 + 8981 / 2 = 8781.50 Debt to Total Assets Ratio – Total Liabilities 4291 + 2129 = 6420 / Total Assets 3406 + 6371 = 9777 = 0.66:1 OR 0.66 Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Total Liabilities 11,067.25 = 0.21:1 OR 0.21 Average Total Liabilities Calculation: 6420 + 9295 / 2 = 11,067.25 Return on Assets – Profit 1435 / Average Total Assets 11,160.50 = 0.128:1 OR 12.8% Average Total Assets Calculation: 9777 + 12544 / 2 = 11,160.50 2020: Profit Margin – Profit $978 / Net Sales $37,784 = 0.025:1 OR 2.5% Working Capital – Current Assets $3779 - Current Liabilities $5681 = -1902 Current Ratio – Current Assets $3779 / Current Liabilities $5681 = 0.67:1 OR $0.67 Current Cash Debt Coverage – Net Cash Provided by Operation Activities $2552 / Average Current Liabilities $ 4986 = 0.51:1 OR 0.51 Average Current Liabilities Calculation: 5681 + 4291 / 2 = 4986 Debt to Total Assets Ratio – Total Liabilities 5681 + 10,053 = 15,734 / Total Assets 3779 + 14570 = 18349 = 0.86:1 OR 0.86 Cash Debt Coverage – Net Cash Provided by Operation Activities $2552 / Average Total Liabilities 10,897 = 0.23:1 OR 0.23 Average Total Liabilities Calculation: 15,734 + 6420 / 2 = 10,897 Return on Assets – Profit 978 / Average Total Assets 14,063 = 0.069:1 OR 0.69% Average Total Assets Calculation: 18349 + 9777 / 2 = 14,063 Which year appears to have stronger liquidity, profitability & solvency? Expla
2019:
Profit Margin – Profit $1435 / Net Sales $38,464 = 0.037:1 OR 3.7%
Current Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Current Liabilities $8781.50 = 0.26:1 OR 0.26
Average Current Liabilities Calculation: 4291 + 8981 / 2 = 8781.50
Debt to Total Assets Ratio – Total Liabilities 4291 + 2129 = 6420 / Total Assets 3406 + 6371 = 9777 = 0.66:1 OR 0.66
Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Total Liabilities 11,067.25 = 0.21:1 OR 0.21
Average Total Liabilities Calculation: 6420 + 9295 / 2 = 11,067.25
Return on Assets – Profit 1435 / Average Total Assets 11,160.50 = 0.128:1 OR 12.8%
Average Total Assets Calculation: 9777 + 12544 / 2 = 11,160.50
- 2020:
Profit Margin – Profit $978 / Net Sales $37,784 = 0.025:1 OR 2.5%
Working Capital – Current Assets $3779 - Current Liabilities $5681 = -1902
Current Ratio – Current Assets $3779 / Current Liabilities $5681 = 0.67:1 OR $0.67
Current Cash Debt Coverage – Net Cash Provided by Operation Activities $2552 / Average Current Liabilities $ 4986 = 0.51:1 OR 0.51
Average Current Liabilities Calculation: 5681 + 4291 / 2 = 4986
Debt to Total Assets Ratio – Total Liabilities 5681 + 10,053 = 15,734 / Total Assets 3779 + 14570 = 18349 = 0.86:1 OR 0.86
Cash Debt Coverage – Net Cash Provided by Operation Activities $2552 / Average Total Liabilities 10,897 = 0.23:1 OR 0.23
Average Total Liabilities Calculation: 15,734 + 6420 / 2 = 10,897
Return on Assets – Profit 978 / Average Total Assets 14,063 = 0.069:1 OR 0.69%
Average Total Assets Calculation: 18349 + 9777 / 2 = 14,063
Which year appears to have stronger liquidity, profitability & solvency? Expla
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