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Balance Sheet December 31, 2020 LIABILITIES AND SHAREHOLDER'S ASSETS EQUITY Current assets Current liabilities Cash 2,000 Accounts payable 2,000 Accounts receivable 8,000 Notes payable 5,000 Inventory 7,000 Deferred revenue 2,000 Total current assets 17,000 Total current liabilities 9,000 Property and equipment Equipment 50,000 Long-term debt 50,000 Less accumulated depreciation -10,000 40000 Total liabilities 59,000 Total assets 74,000 Shareholders' Equity Common stock 10,000 Additional paid-in capital Retained earnings 2,000 3,000 15,000 Total liabilities and shareholders' equity 74,000

Balance Sheet December 31, 2020 LIABILITIES AND SHAREHOLDER'S ASSETS EQUITY Current assets Current liabilities Cash 2,000 Accounts payable 2,000 Accounts receivable 8,000 Notes payable 5,000 Inventory 7,000 Deferred revenue 2,000 Total current assets 17,000 Total current liabilities 9,000 Property and equipment Equipment 50,000 Long-term debt 50,000 Less accumulated depreciation -10,000 40000 Total liabilities 59,000 Total assets 74,000 Shareholders' Equity Common stock 10,000 Additional paid-in capital Retained earnings 2,000 3,000 15,000 Total liabilities and shareholders' equity 74,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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a. Current ratio
b. Inventory Turnover ratio
c. Accounts receivable ratio
d. Fixed asset turnover ratio
e. Net profit margin
f. Return of assets (ROA)
g. Return of equity (ROE)

Balance Sheet December 31, 2020 LIABILITIES AND SHAREHOLDER'S ASSETS EQUITY Current assets Current liabilities Cash 2,000 Accounts payable 2,000 Accounts receivable 8,000 Notes payable 5,000 Inventory 7,000 Deferred revenue 2,000 Total current assets 17,000 Total current liabilities 9,000 Property and equipment Equipment 50,000 Long-term debt 50,000 Less accumulated depreciation -10,000 40000 Total liabilities 59,000 Total assets 74,000 Shareholders' Equity Common stock 10,000 Additional paid-in capital 2,000 Retained earnings 3,000 15,000 Total liabilities and shareholders' equity 74,000
Transcribed Image Text:Balance Sheet December 31, 2020 LIABILITIES AND SHAREHOLDER'S ASSETS EQUITY Current assets Current liabilities Cash 2,000 Accounts payable 2,000 Accounts receivable 8,000 Notes payable 5,000 Inventory 7,000 Deferred revenue 2,000 Total current assets 17,000 Total current liabilities 9,000 Property and equipment Equipment 50,000 Long-term debt 50,000 Less accumulated depreciation -10,000 40000 Total liabilities 59,000 Total assets 74,000 Shareholders' Equity Common stock 10,000 Additional paid-in capital 2,000 Retained earnings 3,000 15,000 Total liabilities and shareholders' equity 74,000
Income Statement as of December 31, 2020 Sales 55,000 Cost of goods sold 27,000 Gross profit 28,000 Operating Expense: Salary, utilities and 1,800 Store rent 1,200 Utilities expense 720 Equipment rent 1.050 4,770 Operating profit 23,230 Interest expense 1,080 Tax amount 750 1,830 Net profit 21,400 Determine a. Current ratio b. Inventory Turnover ratio c. Accounts receivable ratio d. Fixed asset turnover ratio e. Net profit margin f. Return of assets (ROA) g. Return of equity (ROE)
Transcribed Image Text:Income Statement as of December 31, 2020 Sales 55,000 Cost of goods sold 27,000 Gross profit 28,000 Operating Expense: Salary, utilities and 1,800 Store rent 1,200 Utilities expense 720 Equipment rent 1.050 4,770 Operating profit 23,230 Interest expense 1,080 Tax amount 750 1,830 Net profit 21,400 Determine a. Current ratio b. Inventory Turnover ratio c. Accounts receivable ratio d. Fixed asset turnover ratio e. Net profit margin f. Return of assets (ROA) g. Return of equity (ROE)
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