Case 1 Selected account balances of the George D. Kambouris GDK L.L.C. balance sheet (statement...
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Case 1 Selected account balances of the George D. Kambouris GDK L.L.C. balance sheet (statement of financial position) and income statements at December 31, 2020 were as follows: Current assets 900,000, long term liabilities 280,000, accounts receivable 2019 $ 500,000 and 2020 $700,000, retained earnings, 600,000, inventory 2019 $ 400,000, and 2020 600,000, total liabilities 700,000, sales 1,800,000, total assets 2020 $2,200,000, 2019 $ 1.800,000, cost of goods sold 1,200,000, net income 180,000, current liabilities 420,000, equity: common stock 900,000, total stockholder's equity 1,500,000, Shares outstanding 1,200,000 Required: Complete the table below and perform the following: 1. (1 Mark) Compute the following ratios for 2020. 2. (1.5 Marks) Comment if each ratio is favorable or unfavorable. 3. (1.5 Marks) Compare the company ratios to the industry ratios and write "company" if the company ratio is better or "industry" if the industry ratio is better. Ratio Fav / Industry Company/ UnFav Industry 1.6 1.4 Current ratio = Earnings per share = Debt to equity Days sales outstanding Inventory turnover = Quick Ratio = 38% 104 4 .94 Receivables turnover - 3.5 Debt to total assets = 44% Days inventory on hand = 91
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