(d) Profit Margin(e) Return on Common Shareholders Equity(f) Inventory TurnoverPart 2)Assume Masks-R-Us Ltd. Calculated the following ratios as well. For each ratio, indication ifMasks-R-Us Ltd.'s position improved or worsened from 2019 to 2020.20202019Improved or Worsen?(a) Times interest earned6.9 times5.6 times(b) Return on assets4.7%4.1%(c) Gross profit margin52.5%53.2% 6. Selected financial information for Masks-R-Us Ltd.'s for the last 2 years is available:20202019S 30,000S 70,000S 200,000$ 500,000S 120,000S 280,000S 385,000$ 180,000$ 65,000S 220,000S 15,000S 14,750Accounts receivableInventoryTotal current assets$ 50,000$ 60,000S 160,250$ 420,250S 60,000S 140,000$ 400,000$ 190,000S 80,250S 280,250S 15,000$ 23,000Total assetsTotal curent liabilitiesTotal liabilitiesSales revenue (all credit sales)Cost of goods soldNet IncomeCommon Shareholders' EquityPreferred share dividends declared and paidCommon share dividends declared and paidAverage number of common shares60,00060,000Part 1)Using the financial information provided above, calculate the following ratios for 2020 only.(a) Current Ratio(b) Average Collection Period(c) Debt to Total Assets

Average collection period 365 / Average receivable turnover ratio Average receivable…

6. Selected financial information for Masks-R-Us Ltd.'s for the last 2 years is available: 2020 2019 Accounts receivable $ 50,000 S 60,000 S 160,250 $ 420,250 S 60,000 S 140,000 $ 400,000 S 190,000 S 80,250 S 280,250 S 15,000 $ 23,000 $ 30,000 S 70,000 $ 200,000 $ 500,000 S 120,000 S 280,000 $ 385,000 S 180,000 S 65,000 $ 220,000 S 15,000 $ 14,750 Inventory Total current assets Total assets Total current liabilities Total liabilities Sales revenue (all credit sales) Cost of goods sold Net Income Common Shareholders' Equity Preferred share dividends declared and paid Common share dividends declared and paid Average number of common shares 60,000 60,000 Part 1) Using the financial information provided above, calculate the following ratios for 2020 only. (a) Current Ratio (b) Average Collection Period (c) Debt to Total Assets

6. Selected financial information for Masks-R-Us Ltd.'s for the last 2 years is available: 2020 2019 Accounts receivable $ 50,000 S 60,000 S 160,250 $ 420,250 S 60,000 S 140,000 $ 400,000 S 190,000 S 80,250 S 280,250 S 15,000 $ 23,000 $ 30,000 S 70,000 $ 200,000 $ 500,000 S 120,000 S 280,000 $ 385,000 S 180,000 S 65,000 $ 220,000 S 15,000 $ 14,750 Inventory Total current assets Total assets Total current liabilities Total liabilities Sales revenue (all credit sales) Cost of goods sold Net Income Common Shareholders' Equity Preferred share dividends declared and paid Common share dividends declared and paid Average number of common shares 60,000 60,000 Part 1) Using the financial information provided above, calculate the following ratios for 2020 only. (a) Current Ratio (b) Average Collection Period (c) Debt to Total Assets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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