Calculate the following ratios 1. current ratio 2. Quick Liquidity Ratio 3. cash ratio,

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Accounts Receivable = 900,000
Current liabilities = 2,000,000
Inventory = 800,000
Long-term liabilities = 500,000
Cash = 600,000
Benefits = 840000
Investments = 700,000
Gross Profit = 2,000,000
Fixed assets = 2,000,000
Operational net profit = 1200000
Equity = 8000000
Sales = 4000000
Earnings before interest and taxes = 3240000
Profit after tax = 10o00000
Calculate the following ratios
1. current ratio
2. Quick Liquidity Ratio
3. cash ratio,
4. Ratio of total debt to total assets?
5. The ratio of total debt to equity,
6. Number of times interest is covered
7. „Receivable turnover rate
8. . Fixed Asset Turnover
9.. Total Asset Turnover
gross profit margin
Operations Profit Margin Ratio,
10.
11.
12.
net profit margin ratio,
Transcribed Image Text:Accounts Receivable = 900,000 Current liabilities = 2,000,000 Inventory = 800,000 Long-term liabilities = 500,000 Cash = 600,000 Benefits = 840000 Investments = 700,000 Gross Profit = 2,000,000 Fixed assets = 2,000,000 Operational net profit = 1200000 Equity = 8000000 Sales = 4000000 Earnings before interest and taxes = 3240000 Profit after tax = 10o00000 Calculate the following ratios 1. current ratio 2. Quick Liquidity Ratio 3. cash ratio, 4. Ratio of total debt to total assets? 5. The ratio of total debt to equity, 6. Number of times interest is covered 7. „Receivable turnover rate 8. . Fixed Asset Turnover 9.. Total Asset Turnover gross profit margin Operations Profit Margin Ratio, 10. 11. 12. net profit margin ratio,
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