Question 1 - Vertical analysis
Using the income statement information for Einsworth Corporation that follows, prepare a vertical analysis of the income statement for Einsworth Corporation.
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Einsworth Corporation Income Statement
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Amount
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Percentage
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Sales
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$1,200,000.00
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100.0%
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Cost of goods sold
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780,000.00
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Gross profit
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$420,000.00
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Question 2 - Current Position Analysis
The following items are reported on a company's balance sheet:
Cash - $210,000
Marketable securities - 120,000
Accounts receivable (net) - 110,000
Inventory - 160,000
Accounts payable - 200,000
Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place.
Question 3 - Accounts Receivable Analysis
A company reports the following:
Sales - $3,150,000
Average accounts receivable (net) - 210,000
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables.