Financial Data for True Beauty Saloon as of December 31, 2019: Inventory RM300,000 Long-term debt 500,000 Interest expense 25,000 Accumulated depreciation 450,000 Cash 280,000 Net sales (all credit) 1,800,000 Common stock 900,000 Accounts receivable 325,000 Operating expense (incl. depreciation and taxes) 625,000 Notes payable-current 200,000 Cost of goods sold 1,100,000 Shop and equipment 1,400,000 Accounts payable 180,000 Marketable securities 80,000 Accrued wages 45,000 Retained earnings 190,000 a. From the information presented above, calculate the following ratios for True Beauty Saloon. i. current ratio ii. acid test ratio iii. average collection period iv. inventory turnover v. gross profit margin vi. operating profit margin vii. net profit margin viii. total asset turnover
Financial Data for True Beauty Saloon as of December 31, 2019:
Inventory RM300,000
Long-term debt 500,000
Interest expense 25,000
Cash 280,000
Net sales (all credit) 1,800,000
Common stock 900,000
Operating expense (incl. depreciation and
taxes) 625,000
Notes payable-current 200,000
Cost of goods sold 1,100,000
Shop and equipment 1,400,000
Accounts payable 180,000
Marketable securities 80,000
Accrued wages 45,000
a. From the information presented above, calculate the following ratios for True Beauty Saloon.
i.
ii. acid test ratio
iii. average collection period
iv. inventory turnover
v. gross profit margin
vi. operating profit margin
vii. net profit margin
viii. total asset turnover
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