Sage Company has been operating for several years, and on December 31, 2020, presented the following balance sheet.CashReceivablesInventoryPlant assets (net)(a)(b)(c)(d)Current ratioSAGE COMPANYBALANCE SHEETDECEMBER 31, 2020$42,200 Accounts payable78,100 Mortgage payableAcid-test ratio103,900218,000$442,200The net income for 2020 was $24,800. Assume that total assets are the same in 2019 and 2020.(a) Compute each of the following ratios. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%.)Debt to assets ratioReturn on assetsCommon stock ($1 par)Retained earnings%$86,100137,200%160,00058,900$442,200

The ratio analysis is performed to analyze the financial statements of the business on the basis of…

Sage Company has been operating for several years, and on December 31, 2020, presented the following balance she Cash Receivables Inventory Plant assets (net) (a) (b) The net income for 2020 was $24,800. Assume that total assets are the same in 2019 and 2020. (a) Compute each of the following ratios. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%.) (c) (d) SAGE COMPANY BALANCE SHEET DECEMBER 31, 2020 $42,200 Accounts payable 78,100 Mortgage payable 103,900 218,000 $442,200 Current ratio Acid-test ratio Debt to assets ratio Common stock ($1 par) Retained earnings Return on assets % $86,100 137,200 160,000 58,900 $442,200 %

Sage Company has been operating for several years, and on December 31, 2020, presented the following balance she Cash Receivables Inventory Plant assets (net) (a) (b) The net income for 2020 was $24,800. Assume that total assets are the same in 2019 and 2020. (a) Compute each of the following ratios. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%.) (c) (d) SAGE COMPANY BALANCE SHEET DECEMBER 31, 2020 $42,200 Accounts payable 78,100 Mortgage payable 103,900 218,000 $442,200 Current ratio Acid-test ratio Debt to assets ratio Common stock ($1 par) Retained earnings Return on assets % $86,100 137,200 160,000 58,900 $442,200 %

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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