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1. Inventory at the beginning of 2018 was $350,000.
2. Receivables at the beginning of 2018 were $80,000, net of an allowance for doubtful debts account of $3,000.
3. Total assets at the beginning of 2018 were $1,175,000.
4. No share capital transactions occurred during 2018 or 2019.
5. All sales were on account.

Please calculate the following ratios, for 2019 and 2018, using the information from Mario Ltd:

• Liquidity: Current, Quick, Receivables Turnover, and Inventory Turnover.
• Profitability: Profit Margin, Asset Turnover, Return on Assets, and Earnings Per Share
• How can Mario Ltd improve their Receivables Turnover and their Inventory Turnover?

Financial information for Mario Ltd is presented here. MARIO LTD Statement of Financial Position- as at 31 December 2018 2019 $ 50,000 80,000 100,000 42,000+ 50,000 87,000 ASSETS- Cashe Short-term investments Receivables (net of allowance for doubtful accounts of $4,000 for 2019 and $3,000 for 2018)- Inventoriese Prepaid expenses Lande Building and equipment (net) Total assets 440,000 25,000 75,000 570,000 $1,340,000 300,000 31,000 75,000+ 400,000 $985,000 LIABILITIES AND EQUITY Short term provisions Accounts Payable- Accrued Liabilities: Bonds payable, due 2021- Share capital (100,000 shares) Retained earnings- Total liabilities and equity 125,000 160,000+ 50,000+ 200,000 500,000+ 305,000+ $1,340,000 25,000+ 90,000 50,000+ 100,000 500,000 220,000 $985,000 MARIO LTD Statement of Profit or Loss- for the year ended 31 December + Salese Cost of sales Gross profit Finance coste Operating expenses Profit before tax- Tax expenses Profit 2019 $+ 1,000,000+ (650,000) 350,000+ (20,000) (115,000) 215,000 (100,000) $115,000 2018 Set 940,000 (635,000) 305,000 (10,000) (145,000) 150,000 (70,000) $80,000

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