Please answer ASAP. I really need help PROBLEM 3The La Hermosa Company asked you to interpret the following ratios provided byits accountant:Acid-test ratioTimes interest earnedGross margin ratioInventory turnoverDebt to equity ratioRatio of operating expenses to salesBryThe gross profit for the year ended December 31, 20CY was 1,200,000. Totalstockholders' equity on Dec. 31, 20CY amounted to 1,800,000. The beginningbalance of merchandise inventory, was 400,000., The company's long-termliabilities consisted of bonds payable with interest at 10%. You decided toreconstruct the company's financial statements based on the limited informationgiven to serve as basis for further analysis.REQUIRED: Compute for the following:senses1.5 to 18 times40%6 times9 to I20%6.Interest Expense7.Quick Assets8. Total current assets9. Bonds payable10. Total current liabilitiesAnn

Formula 1. Acid test ratio= Quick asset÷ Current liabilities where Quick asset= Current asset-…

Answered: 6. Interest Expense 7. Quick Assets 8.…

Business

Accounting

6. Interest Expense 7. Quick Assets 8. Total current assets

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...

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Question

Please answer ASAP. I really need help

PROBLEM 3
The La Hermosa Company asked you to interpret the following ratios provided by
its accountant:
Acid-test ratio
Times interest earned
Gross margin ratio
Inventory turnover
Debt to equity ratio
Ratio of operating expenses to sales
Bry
The gross profit for the year ended December 31, 20CY was 1,200,000. Total
stockholders' equity on Dec. 31, 20CY amounted to 1,800,000. The beginning
balance of merchandise inventory, was 400,000., The company's long-term
liabilities consisted of bonds payable with interest at 10%. You decided to
reconstruct the company's financial statements based on the limited information
given to serve as basis for further analysis.
REQUIRED: Compute for the following:
senses
1.5 to 1
8 times
40%
6 times
9 to I
20%
6.
Interest Expense
7.
Quick Assets
8. Total current assets
9. Bonds payable
10. Total current liabilities
Ann

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