solved This week you will explore analysis by computing key performance
This week you will explore analysis by computing key performance indicators for a company. You should calculate each ratio using the financial statements provided and then choose the correct answer from the choices provided in the assignment. Â You will round to two decimal places. Â If it is expressed at a %, you need to convert to % and then take out two decimal places. Â Standard rounding applies.
Rush Industries Income Statement for the Year Ended December 31, 2019Sales revenue  $   160,000Less: Cost of sales       106,000Gross profits  $     54,000Less: Operating expensesSales and marketing expense  $     16,000General and administrative expenses         10,000Lease expense           1,000Depreciation expense         10,000Total operating expense  $     37,000Operating profits  $     17,000Less: Interest expense           6,100Net profits before taxes  $     10,900Less: Taxes           4,360Net income $       6,540Rush Industries Balance Sheet December 31, 2019Assets   Cash  $          500Marketable securities           1,000Accounts receivable         25,000Inventories         45,500Total current assets  $     72,000Land  $     26,000Buildings and equipment         90,000Less: Accumulated depreciation         38,000Total fixed assets  $     78,000Total assets  $   150,000Liabilities and Stockholders’ Equity Accounts payable  $     22,000Notes payable         47,000Total current liabilities  $     69,000Long-term debt         22,950    Total liabilities        91,950Common stocka        31,500Retained earnings         26,550    Total stockholders’ equity        58,050Total liabilities and stockholders’ equity  $   150,000aThe firm’s 3,000 outstanding shares of common stock closed 2019 at a price of $25 per share.
Using the financial statements above, you will calculate the 2019 actual ratios. Â You will then enter your answers in the questions that follow. Â The first set of questions will be to provide your ratios. Â Then you will analyze by comparing to industry and 2018 (both provided here).