Smith company balance sheet assets cash and marketable


Smith Company Balance Sheet Assets: Cash and marketable securities $300,000 Accounts receivable 2,215,000 Inventories 1,837,500 Prepaid expenses 24,000 Total current assets $3,286,500 Fixed assets 2,700,000 Less: accumulated depreciation 1,087,500 Net fixed assets $1,612,500 Total assets $4,899,000 Liabilities: Accounts payable $240,000 Notes payable 825,000 Accrued taxes 42,500 Total current liabilities $1,107,000 Long-term debt 975,000 Owner’s equity 2,817,000 Total liabilities and owner’s equity $4,899,000 Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,312,500 Selling and administrative expense 1,387,500 Depreciation expense 135,000 Interest expense 127,000 Earnings before taxes $412,500 Income taxes 225,000 Net income $187,500 Common stock dividends $97,500 Change in retained earnings $90,000 45. Based on the information in Table 1, the current ratio is: a. 2.97. b. 1.46. c. 2.11. d. 2.23. 46. Based on the information in Table 1, and using a 360-day year, the average collection period is: a. 71 days. b. 84 days. c. 64 days. d. 125 days. 47. Based on the information in Table 1, the debt ratio is: a. 0.70. b. 0.20. c. 0.74. d. 0.42. 48. Based on the information in Table 1, the net profit margin is: a. 4.61%. b. 2.94%. c. 1.97%. d. 5.33%. 49. Based on the information in Table 1, the inventory turnover ratio is: a. 0.29 times. b. 2.35 times. c. 0.43 times. d. 3.47 times. i need all step the answer is there

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Financial Management: Smith company balance sheet assets cash and marketable
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