**Balance Sheet and Income Statement for Metro Eagle Outfitters****Balance Sheet***2022*- Cash and short-term investments: $649,992- Accounts receivable: $48,221- Inventory: $351,452- Other current assets: $111,135- Total current assets: $1,160,800- Long-lived assets: $573,332- Total assets: $1,734,132- Current liabilities: $480,402- Total liabilities: $511,045- Shareholders’ equity: $1,223,087- Total liabilities and equity: $1,734,132*2021*- Cash and short-term investments: $764,044- Accounts receivable: $42,210- Inventory: $405,514- Other current assets: $113,720- Total current assets: $1,325,488- Long-lived assets: $618,982- Total assets: $1,944,470- Current liabilities: $462,401- Total liabilities: $523,486- Shareholders’ equity: $1,420,984- Total liabilities and equity: $1,944,470*2020*- Cash and short-term investments: $753,693- Accounts receivable: $40,521- Inventory: $320,208- Other current assets: $97,988- Total current assets: $1,212,410- Long-lived assets: $565,302- Total assets: $1,777,712- Current liabilities: $406,837- Total liabilities: $422,841- Shareholders’ equity: $1,354,871- Total liabilities and equity: $1,777,712**Income Statement***2022*- Sales: $3,479,602- Cost of sales: $2,104,480- Gross margin: $1,375,122- Operating expenses: $971,184- Earnings before interest and taxes: $403,938- Net income: $251,108- Interest paid in cash: $99- Taxes paid in cash: $143,909*2021*- Sales: $3,121,965- Cost of sales: $1,994,471- Gross margin: ### Required:Calculate the following liquidity ratios for Metro Eagle in 2021 and 2022:1. Inventory turnover.2. Current ratio.3. Quick ratio.4. Cash flow ratio.---### Inventory Turnover- **2022** - **Numerator:** - **Denominator:** Average inventory - Calculation: \[ = \]- **2021** - **Numerator:** - **Denominator:** Average inventory - Calculation: \[ = \]---### Current Ratio- **2022** - **Numerator:** - **Denominator:** - Calculation: \[ = \]- **2021** - **Numerator:** - **Denominator:** - Calculation: \[ = \]---### Quick Ratio- **2022** - **Numerator:** - **Denominator:** - Calculation: \[ = \]- **2021** - **Numerator:** - **Denominator:** - Calculation: \[ = \]---### Cash Flow Ratio- **2022** - **Numerator:** - **Denominator:** - Calculation: \[ = \]- **2021** - **Numerator:** - **Denominator:** - Calculation: \[ = \]---The table is structured to guide the calculation of liquidity ratios by providing sections for entering both the numerators and denominators of each ratio for the years 2021 and 2022. Each section allows for detailed notation of the calculation process, facilitating clear understanding and analysis.

The question is related to Ratio Analysis. The required ratios are calculated with the help of…

The following is the balance sheet and income statement for Metro Eagle Outfitters, in condensed form, plus some information fro the cash flow statement. Balance Sheet Cash and short-term investments Accounts receivable Inventory Other current assets Total current assets Long-lived assets. Total assets Current liabilities. Total liabilities Shareholders' equity Total liabilities and equity Income Statement Sales Cost of sales Gross margin Operating expenses Earnings before interest and taxes. Net income Interest paid in cash Taxes paid in cash Cash Flows Cash flow from operations Capital expenditures Dividends 2022 $ 649,992 48,221 351, 452 111, 135 1,160,800 573,332 1. Inventory turnover. 2. Current ratio. 3. Quick ratio. 4. Cash flow ratio. $ 1,734, 132 $ 480,402 511,045 1,223,087 $ 1,734, 132 $ 3,479,602 2,104,480 $ 1,375, 122 971, 184 $403,938 $ 251,108 99 143,909 $ 604,171 95,839 87,492 Required: Calculate the following liquidity ratios for Metro Eagle in 2021 and 2022: 2021 $764,044 42,210 405,514 113,720 1,325,488 618,982 $ 1,944, 470 $ 462,401 523,486 1,420,984 $ 1,944, 470 $ 3,121,965 1,994,471 $ 1,127,494 850,385 $ 277,109 $ 153,605 201 100,706 $ 521,817 93,266 87,492 2020 $ 753,693 40,521 320,208 97,988 1,212,410 565,302 $ 1,777,712 $ 406,837 422,841 1,354,871 $ 1,777,712 $ 2,949,094 1,782, 143 $ 1,166,951 847,676 $ 319,275 $ 142,547 180 47,637 $ 399,416 79,704 85,066

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q