culate Select RatioS - Excel FILE PAGE LAYOUT Sign In HOME INSERT FORMULAS DATA REVIEW VIEW Calibri -11 A A % Alignment Number Conditional Format as Cell Formatting Table Styles Paste BIU A Cells Editing Clipboard a Font Styles D23 fe A D E 20 Income Statement $ 3,031,000 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income 1,949,000 1,082,000 891,400 190,600 14,500 176,100 47,000 129,100 $ 30 31 Required: 32 Compute the following liquidity ratios for Year 3. Round to the 33 required number of decimal places USING THE EXCEL. 34 ROUND FUNCTION (fx). 35 Current ratio (rounded to one decimal place) 36 Receivables turnover (rounded to two decimal places) 37 Days to collect (rounded to the nearest whole day) 38 Inventory turnover (rounded to two decimal places) 39 Days to sell (rounded to the nearest whole day) to 1 |times ]days times days 40 41 Compute the following Solvency Ratios for Year 3. Again, USE 42 THE EXCEL ROUND FUNCTION (fx). 43 Debt to assets (rounded to two decimal places) 44 Times interest earned (rounded to one decimal place) to 1 times 45 46 Compute the following Profitability Ratios for Year 3. Again, USE 47 THE EXCEL ROUND FUNCTION (fx). Net profit margin (rounded to one decimal place) 49 Gross profit percentage (rounded to one decimal place) percent percent 48 50 51 Sheet1
culate Select RatioS - Excel FILE PAGE LAYOUT Sign In HOME INSERT FORMULAS DATA REVIEW VIEW Calibri -11 A A % Alignment Number Conditional Format as Cell Formatting Table Styles Paste BIU A Cells Editing Clipboard a Font Styles D23 fe A D E 20 Income Statement $ 3,031,000 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income 1,949,000 1,082,000 891,400 190,600 14,500 176,100 47,000 129,100 $ 30 31 Required: 32 Compute the following liquidity ratios for Year 3. Round to the 33 required number of decimal places USING THE EXCEL. 34 ROUND FUNCTION (fx). 35 Current ratio (rounded to one decimal place) 36 Receivables turnover (rounded to two decimal places) 37 Days to collect (rounded to the nearest whole day) 38 Inventory turnover (rounded to two decimal places) 39 Days to sell (rounded to the nearest whole day) to 1 |times ]days times days 40 41 Compute the following Solvency Ratios for Year 3. Again, USE 42 THE EXCEL ROUND FUNCTION (fx). 43 Debt to assets (rounded to two decimal places) 44 Times interest earned (rounded to one decimal place) to 1 times 45 46 Compute the following Profitability Ratios for Year 3. Again, USE 47 THE EXCEL ROUND FUNCTION (fx). Net profit margin (rounded to one decimal place) 49 Gross profit percentage (rounded to one decimal place) percent percent 48 50 51 Sheet1
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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Ratio is a tool which is used to measure or evaluate the profitability of a firm by establishing relation between different figures of financial statements.
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