xFundamental Accounting P x Q Chapter 12 flashcards | Qu X Chspter 12 Tashcard M

Question

xFundamental Accounting P x Q Chapter 12 flashcards | Qu X Chspter 12 Tashcard MExam 3 ezto.mheducation.com/hm.tpx Use the following selected data from Success Systems income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below: computer services revenue, $26,995; net sales (of goods), $21,894; total sales and revenue, $48,889; cost of goods sold, $15,462; net income, $20,163; quick assets, $89,268; current assets, $97,008; total assets, $119,968: current liabilities, $780; total liabilities, $780; and total equity, $119,188. Required 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. Round your answers to 1 decimal place.) With service Without serv Gross margin ratio profit margin retio 2. Compute the current ratio and acio-test rato. (Round your answers to 1 decimal place.) Current rateo Acid-fest ratio

Explanation / Answer

1) WIth service revenue ,Gross margin ratio = (48889-15462)/48889 = 33427/48889= .6837 or 68.4%

Without service revenue = (21894 - 15462)/21894 = 29.4%

Net margin = 20163 / 48889 = 41.2%

2)current ratio =current asset /current liabilities

                      = 97008/780 = 124.4

Acid test ratio = Quick asset /current liabilities

               =89268 /780

          = 114.4

3)Debt ratio =TOtal debt /total asset

                 = 780/119968 = .7%

Equity ratio =Total equity /total asset

                = 119188/119968 = .99.3%

4)current asset = 97008/119968 =80.9%

Long term asset = 100-80.9 = 19.1%

Related Questions

Navigate

• Browse (All)
• Browse X
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.