I ONLY NEED THE ANSWER FOR #3. PLEASE ONLY HELP ME ON #3 QUESTION. THANKS! Use t
ID: 2488392 • Letter: I
Question
I ONLY NEED THE ANSWER FOR #3. PLEASE ONLY HELP ME ON #3 QUESTION. THANKS!
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, $28,675; net sales (of goods), $19,488; total sales and revenue, $48,163; cost of goods sold, $13,742; net income, $20,610; quick assets, $89,708; current assets, $95,320; total assets, $120,416; current liabilities, $1,120; total liabilities, $1,120; and total equity, $119,296.
Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. (Round your answers to 1 decimal place.)
Compute the current ratio and acid-test ratio. (Round your answers to 1 decimal place.)
Compute the debt ratio and equity ratio. (Round your answers to 1 decimal place.)
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, $28,675; net sales (of goods), $19,488; total sales and revenue, $48,163; cost of goods sold, $13,742; net income, $20,610; quick assets, $89,708; current assets, $95,320; total assets, $120,416; current liabilities, $1,120; total liabilities, $1,120; and total equity, $119,296.
Explanation / Answer
Total assets = $120416
Current Liabilities = $1120
Equity = $119296
Total Assets = Equity + Debt + Current Liabilities
Debt = Total Assets - Current Liabilities - Equity
Debt = $120416 - $1120 - $119296
Debt = 0
Debt Ratio = Debt / Total Assets
Since debt is 0, Debt ratio is also 0.
Equity Ratio = equity / Total Assets
= 119296 / 120416 = 99.07%
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