Q3 The following information relates to Best Digital Requirements Net sales(all on credit) Cost of goods Sold Interest Expense Net Income Current Assets: Cash short-term investment Account Receivable, net Merchandise inventory-Beginning Merchandise inventory-Ending prepaid Expenses Total current Assets Total Assets Total current liabilities Total liabilities Total stockholders' Equity Common Stock (No. of Shares) Best Digital (SR) 417,925 207,000 0 56,000 Best Digital (SR) 23,000 38,000 37,000 81,000 65,000 22,000 185,000 261,000 100,000 100,000 161,000 12,000 Compute the following ratios for both companies for the current year: a. Profit Margin Ratio. b. Days' Sales in Inventory c. Current Ratio
Q3 The following information relates to Best Digital Requirements Net sales(all on credit) Cost of goods Sold Interest Expense Net Income Current Assets: Cash short-term investment Account Receivable, net Merchandise inventory-Beginning Merchandise inventory-Ending prepaid Expenses Total current Assets Total Assets Total current liabilities Total liabilities Total stockholders' Equity Common Stock (No. of Shares) Best Digital (SR) 417,925 207,000 0 56,000 Best Digital (SR) 23,000 38,000 37,000 81,000 65,000 22,000 185,000 261,000 100,000 100,000 161,000 12,000 Compute the following ratios for both companies for the current year: a. Profit Margin Ratio. b. Days' Sales in Inventory c. Current Ratio
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms:
Liquidity ratios: current ratio; quick, or acid test,...
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