Numerator Denominator Numerator Denominator Numerator Denominator Numerator Denominator Inventory Turnover Cost of sales Average inventory Current Ratio rrent assets Current liabilities Quick Ratio Total assets Current liabilities X Answer is complete but not entirely correct. Cash Flow Ratio Cash flow from operations Current liabilities || 2022 $ 1,994,471 X $362,861 x 2022 $ 1,160,800 $ 480,402 2022 $ $ 480,402 919,974 X 2022 $ 521,817 X $ 462,401 = = = 5.50 2.42 1.92 1.13 2021 $ 2,104,480 $ 378,483 x 2021 $ 1,325,488 $ 462,401 $ $ 2021 809,348 x $ 462,401 2021 604,171 X 480,402 X = 5.56 2.87 1.75 1.26 The following is the balance sheet and income statement for Metro Eagle Outfitters, in condensed form, plus some information from the cash flow statement. Balance Sheet Cash and short-term investments Accounts receivable Inventory Other current assets Total current assets Long-lived assets Total assets Current liabilities Total liabilities Shareholders' equity Total liabilities and equity Income Statement Sales Cost of sales Gross margin Operating expenses Earnings before interest and taxes Net income Interest paid in cash Taxes paid in cash Cash Flows Cash flow from operations Capital expenditures Dividends 2022 $ 649,992 48,221 351, 452 111,135 1,160,800 573,332 $ 1,734, 132 $ 480,402 511,045 1,223,087 $ 1,734, 132 1. Inventory turnover. 2. Current ratio. 3. Quick ratio. 4. Cash flow ratio. $ 3,479,602 2,104,480 $ 1,375,122 971, 184 $ 403,938 $ 251,108 99 143,909 $ 604,171 95,839 87,492 Required: Calculate the following liquidity ratios for Metro Eagle in 2021 and 2022: 2021 $ 764,044 42,210 405,514 113,720 1,325,488 618,982 $ 1,944,470 $ 462,401 523,486 1,420,984 $ 1,944,470 $ 3,121,965 1,994,471 $ 1,127,494 850,385 $ 277,109 $ 153,605 201 100,706 $ 521,817 93,266 87,492 2020 $ 753,693 40,521 320,208 97,988 1,212,410 565,302 $ 1,777,712 $ 406,837 422,841 1,354,871 $ 1,777,712 $ 2,949,094 1,782, 143 $ 1,166,951 847,676 $ 319,275 $ 142,547 180 47,637 $ 399,416 79,704 85,066
Numerator Denominator Numerator Denominator Numerator Denominator Numerator Denominator Inventory Turnover Cost of sales Average inventory Current Ratio rrent assets Current liabilities Quick Ratio Total assets Current liabilities X Answer is complete but not entirely correct. Cash Flow Ratio Cash flow from operations Current liabilities || 2022 $ 1,994,471 X $362,861 x 2022 $ 1,160,800 $ 480,402 2022 $ $ 480,402 919,974 X 2022 $ 521,817 X $ 462,401 = = = 5.50 2.42 1.92 1.13 2021 $ 2,104,480 $ 378,483 x 2021 $ 1,325,488 $ 462,401 $ $ 2021 809,348 x $ 462,401 2021 604,171 X 480,402 X = 5.56 2.87 1.75 1.26 The following is the balance sheet and income statement for Metro Eagle Outfitters, in condensed form, plus some information from the cash flow statement. Balance Sheet Cash and short-term investments Accounts receivable Inventory Other current assets Total current assets Long-lived assets Total assets Current liabilities Total liabilities Shareholders' equity Total liabilities and equity Income Statement Sales Cost of sales Gross margin Operating expenses Earnings before interest and taxes Net income Interest paid in cash Taxes paid in cash Cash Flows Cash flow from operations Capital expenditures Dividends 2022 $ 649,992 48,221 351, 452 111,135 1,160,800 573,332 $ 1,734, 132 $ 480,402 511,045 1,223,087 $ 1,734, 132 1. Inventory turnover. 2. Current ratio. 3. Quick ratio. 4. Cash flow ratio. $ 3,479,602 2,104,480 $ 1,375,122 971, 184 $ 403,938 $ 251,108 99 143,909 $ 604,171 95,839 87,492 Required: Calculate the following liquidity ratios for Metro Eagle in 2021 and 2022: 2021 $ 764,044 42,210 405,514 113,720 1,325,488 618,982 $ 1,944,470 $ 462,401 523,486 1,420,984 $ 1,944,470 $ 3,121,965 1,994,471 $ 1,127,494 850,385 $ 277,109 $ 153,605 201 100,706 $ 521,817 93,266 87,492 2020 $ 753,693 40,521 320,208 97,988 1,212,410 565,302 $ 1,777,712 $ 406,837 422,841 1,354,871 $ 1,777,712 $ 2,949,094 1,782, 143 $ 1,166,951 847,676 $ 319,275 $ 142,547 180 47,637 $ 399,416 79,704 85,066
Chapter1: Financial Statements And Business Decisions
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