Essay
The financial statements of Remco Distributors Inc. appear below: 
Additional information for 2020:
1. Cash dividends of $45,000 were declared and paid.
2. Average number of common shares was 60,000 shares.
3. Market value of common shares on December 31 was $20 per share.
Instructions
Using the financial statements and the additional information, calculate the following ratios for 2020:
a) Current ratio
b) Return on equity
c) Price/earnings ratio
d) Accounts Receivables turnover
e) Profit margin
Correct Answer:
Verified
a) Current ratio: $160,250 / $60,000 = 2...View Answer
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Correct Answer:
Verified
View Answer
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