Answer letter d to letter m. What I can doActivity 2:Direction: Use given the ratio compute the Financial Ratio Analysis.The comparative statement of financial position and statement of comprehensiveincome of Entity A on December 31, 2020 are shown below:АВС Со.Statement of Financial PositionAs of December 31, 2020ASSETSCash and cash equivalents2020440,000130,000120,00040,000730,0002019200,000120,000480,000160.000Accounts receivableInventoryPrepaid assetsTotal current assets960,000Property, plant & equipmentTotal noncurrent assets760,000760,000440,000440,000TOTAL ASSETS1,490,0001,400,000LIABILITIESTrade and other payables620,000560,000EQUITYOwner's capital870,000840,000TOTAL LIABILITIES & EQUITY1,490,0001,400,000АВС Со.Statement of Comprehensive IncomeFor the year ended December 31, 2020Sales1,000,000(600,000)400,000150,000(240,000)(120,000)(30,000)(40,000)120,000Cost of salesGROSS PROFITRent incomeDepreciation expenseInsurance expenseBad debts expenseLoss on sale of equipmentPROFIT FOR THE YEAROther comprehensive incomeCOMPREHENSIVE INCOME FOR THE YR.120,00010Requirements: Compute for the following financial ratios for the year 2020:(round-off answers to two decimal places)a. Current ratiob. Quick (Acid-test) ratioWorking capitald. Inventory turnovere. Days of inventory (use 365 days)f. Accounts receivable turnover (assume all sales are on credit)g. Days of receivable (use 365 days)h. Debt ratioi. Equity ratioj. Debt-to-equity ratiok. Gross profit ratioI. Net profit ratiom. Return on assets.n. Return on equity.

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Answered: d. Inventory turnover e. Days of…

d. Inventory turnover e. Days of inventory (use 365 days) f. Accounts receivable turnover (assume all sales are on credit) g. Days of receivable (use 365 days)

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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