The following information has been extracted from the financial statements and notes of Spring Ltd. 2020 2019 Cash and Cash Equivalents 60,600 59,700 Account Receivable(net) 130,800 128,900 Account Payable 54,700 52,900 Revenue 780,000 750,000 Cost of Goods Sold 450,500 445,500 Profit 65,500 58,500 Inventory 234,700 215,300 Total assets 580,000 590,000 Current Liabilities 250,900 265,700 Total liabilities 300,000 330,000 Short-term investments 67,400 75,900 Based on the above information calculate the following ratios: 1) Return on assets for 2020. 2) Profit Margin ratio for 2020. 3) Debt to assets ratio for 2020.
The following information has been extracted from the financial statements and notes of Spring Ltd. 2020 2019 Cash and Cash Equivalents 60,600 59,700 Account Receivable(net) 130,800 128,900 Account Payable 54,700 52,900 Revenue 780,000 750,000 Cost of Goods Sold 450,500 445,500 Profit 65,500 58,500 Inventory 234,700 215,300 Total assets 580,000 590,000 Current Liabilities 250,900 265,700 Total liabilities 300,000 330,000 Short-term investments 67,400 75,900 Based on the above information calculate the following ratios: 1) Return on assets for 2020. 2) Profit Margin ratio for 2020. 3) Debt to assets ratio for 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information has been extracted from the financial statements and notes of Spring Ltd.
|
|
2020 |
2019 |
|
Cash and Cash Equivalents |
60,600 |
59,700 |
|
|
130,800 |
128,900 |
|
Account Payable |
54,700 |
52,900 |
|
Revenue |
780,000 |
750,000 |
|
Cost of Goods Sold |
450,500 |
445,500 |
|
Profit |
65,500 |
58,500 |
|
Inventory |
234,700 |
215,300 |
|
Total assets |
580,000 |
590,000 |
|
Current Liabilities |
250,900 |
265,700 |
|
Total liabilities |
300,000 |
330,000 |
|
Short-term investments |
67,400 |
75,900 |
Based on the above information calculate the following ratios:
1) Return on assets for 2020.
2) Profit Margin ratio for 2020.
3) Debt to assets ratio for 2020.
4) Acid-test ratio for 2020.
5) Inventory Turnover ratio for 2020.
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