Question 5 The following is the Balance Sheet of AXEL Ltd for 2019 2020. Dec...
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Question 5 The following is the Balance Sheet of AXEL Ltd for 2019 2020. Dec 31, 2020 Dec 31, 2019 BALANCE SHEET Assets Cash Short-term investments Accounts receivable, net Inventory $ 39,500 32,500 600,000 125,000 $ 21,000 48,000 50,000 132,500 Land Buildings PP&E, net 50,000 312,500 222,500 50,000 337,500 200,000 $839,000 $842,000 Labilities Accounts payable Short-term notes payable Accrued liabilities $82,000 37,500 13,000 132,500 $ 95,000 45,000 6,000 146,000 Long-term Notes payable(mortgage) 200,000 41SODO 210,000 SOZOD Shareholders' equity Share capital at $5 per share Retained earnings Total shareholders' equity Total liabilities and Share holders'equity $ 237,500 272,000 $509,500 $ 237,500 245,500 $483,000 $842,000 $839,000 Net profit $47,000 $19,000 Required: Calculate the following ratios for the years 2020 and 2019. 1. Current ratio=Current Assets/Current Liabilities 2. Acid-test/Quick ratio = Current assets less inventory less Prepaid exp/Current Liabilities 3. Debt ratio = Total Liabilities/Total Assets X100 4. Return on total assets ratio = Net Profit/Total assets X100 5. Earnings per share = Net Profit/Number of Ordinary shares (20 points)
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