Consider the following balance sheet and income statement for Metro Eagle Outfitters, in condensedform, including some information from the cash flow statement:Balance Sheet 2019 2018 2017Cash and short-term investments $ 630,992 $ 745,044 $ 734,693Accounts receivable 46,321 40,310 36,721Inventory 332,452 367,514 301,208Other current assets 132,035 134,620 101,788Total current assets 1,141,800 1,287,488 1,174,410Long-lived assets 582,832 647,482 593,802Total assets $ 1,724,632 $ 1,934,970 $ 1,768,212Current liabilities $ 432,902 $ 405,401 $ 387,837Total liabilities 503,445 517,786 417,141Shareholders’ equity 1,221,187 1,417,184 1,351,071Total debt and equity $ 1,724,632 $ 1,934,970 $ 1,768,212Income StatementSales $ 3,475,802 $ 3,120,065 $ 2,945,294Cost of sales 2,085,480 1,975,471 1,763,143Gross margin $ 1,390,322 $ 1,144,594 $ 1,182,151Operating expenses 988,284 869,385 864,776Earnings before interest and taxes $ 402,038 $ 275,209 $ 317,375Net income $ 232,108 $ 151,705 $ 140,647Interest paid in cash 80 182 161Taxes paid in cash 142,009 99,756 45,737Cash FlowsCash flow from operations $ 499,671 $ 398,137 $ 380,416Capital expenditures 93,939 89,466 75,904Dividends 85,592 85,592 83,166Required Calculate the following liquidity ratios for Metro Eagle in 2018 and 2019:1. Inventory turnover.2. Current ratio.3. Quick ratio.4. Cash flow ratio.
Consider the following balance sheet and income statement for Metro Eagle Outfitters, in condensed
form, including some information from the cash flow statement:
Balance Sheet 2019 2018 2017
Cash and short-term investments $ 630,992 $ 745,044 $ 734,693
Accounts receivable 46,321 40,310 36,721
Inventory 332,452 367,514 301,208
Other current assets 132,035 134,620 101,788
Total current assets 1,141,800 1,287,488 1,174,410
Long-lived assets 582,832 647,482 593,802
Total assets $ 1,724,632 $ 1,934,970 $ 1,768,212
Current liabilities $ 432,902 $ 405,401 $ 387,837
Total liabilities 503,445 517,786 417,141
Shareholders’ equity 1,221,187 1,417,184 1,351,071
Total debt and equity $ 1,724,632 $ 1,934,970 $ 1,768,212
Income Statement
Sales $ 3,475,802 $ 3,120,065 $ 2,945,294
Cost of sales 2,085,480 1,975,471 1,763,143
Gross margin $ 1,390,322 $ 1,144,594 $ 1,182,151
Operating expenses 988,284 869,385 864,776
Earnings before interest and taxes $ 402,038 $ 275,209 $ 317,375
Net income $ 232,108 $ 151,705 $ 140,647
Interest paid in cash 80 182 161
Taxes paid in cash 142,009 99,756 45,737
Cash Flows
Cash flow from operations $ 499,671 $ 398,137 $ 380,416
Capital expenditures 93,939 89,466 75,904
Dividends 85,592 85,592 83,166
Required Calculate the following
1. Inventory turnover.
2.
3. Quick ratio.
4. Cash flow ratio.
Trending now
This is a popular solution!
Step by step
Solved in 7 steps with 6 images
