50.1K

Verified Solution

Link Copied!

(to two decimal places) shown on the table following the financial statements. Please put your final answers into the table. Each ratio is worth 2 points. WRIGLEY CORP. - BALANCE SHEET 12/31/19 ASSETS Current Assets Cash Accounts Receivable Inventory Total Current Assets $190,000 $100,000 $140,000 $430,000 Fixed Assets Land Machinery Equipment Less accumulated depreciation Total Fixed Assets $380,000 $140,000 $270,000 ($20,000) $770,000 LIABILITIES Current Liabilitics Accounts Payable Notes Payable Accrued Salaries Payable Total Current Liabilities $160,000 $170,000 $ 70,000 $400,000 Long-term Liabilities Long-term Debt Total Long-term Liabilities $500,000 $500,000 United States) WRIGLEY CORP. - INCOME STATEMENT YEAR ENDED 12/31/19 Revenues Cash Sales Credit Sales Total Revenues $2,300,000 $1,700,000 $4,000,000 $2,900,000 Cost of Goods Sold $1,100,000 Gross Profit Operating and General Expenses Rent Advertising Salaries Travel Utilities Taxes Total Expenses $ 100,000 $ 50,000 $ 300,000 $ 100,000 $ 50,000 $ 350,000 $ 950,000 I Net Income $ 150,000 Put your final answers on the following table. RATIO INDUSTRY MEDIAN WRIGLEY Liquidity Ratios Put your final answers on the following table. RATIO INDUSTRY MEDIAN WRIGLEY Liquidity Ratios Working Capital N/A Current Ratio 1.1 0.8 Acid Test Quick Ratio Activity Ratios Average Collection Period 15 days Inventory Turnover 25 times/year Leverage Ratios Debt Ratio 0.6 Debt to Equity Ratio 2.2 Profitability Ratios Gross Margin 50% Net Margin (ROR) 10% Rctum on Investment 22% ed States) Focus

Answer & Explanation Solved by verified expert

See Answer