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
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 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.
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