Presented Below Are the Comparative Balance Sheets of Big Apple

Question

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The Answer is A) ROI = Margin * Turnover = (Net Income/Sales) * (Sales/Average assets)
= ($74,000/$890,000) * [$890,000/(($580,000 + $624,000)/2))] = 8.31% * 1.478 = 12.3%
B) ROE = Net income/Average stockholders' equity
= $74,000/[($279,000 + $332,000)/2] = 24.2%
C) Working capital = Current assets - Current liabilities
= $380,000 - $205,000 = $175,000
D) Current ratio = Current assets/Current liabilities
= $380,000/$205,000 = 1.85
E) Acid-test ratio = (Cash + Accounts Receivable)/Current liabilities
= ($45,000 + $134,000)/$205,000 = 0.87

Presented Below Are the Comparative Balance Sheets of Big Apple

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Presented Below Are the Comparative Balance Sheets of Big Apple

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
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