Use the following selected data from Success Systems' income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below: computer services revenue, $26,050; net sales (of goods), $20,217; total sales and revenue, $46,267; cost of goods sold, $13,676; net income, $20,718; quick assets, $88,904; current assets, $96,504; total assets, $122,312; current liabilities, $1,030; total liabilities, $1,030; and total equity, $121,282.

Use the following selected data from Success Systems' income statement for the three months ended March 31, 2014, and from its March 31, 2014, balance sheet to complete the requirements below: computer services revenue, $26,050; net sales (of goods), $20,217; total sales and revenue, $46,267; cost of goods sold, $13,676; net income, $20,718; quick assets, $88,904; current assets, $96,504; total assets, $122,312; current liabilities, $1,030; total liabilities, $1,030; and total equity, $121,282.

1.

Gross margin with services revenue

Gross margin        = Total revenue − Cost of goods sold                            = $46,267 − $13,676 = $32,591

Gross margin ratio = $32,591 / $46,267 = 70.4%

  

Gross margin without services revenue

Gross margin        = Net (goods) sales − Cost of goods sold                            = $20,217 − $13,676 = $6,541

Gross margin ratio = $6,541 / $20,217 = 32.4%

  

Profit margin ratio = $20,718 / $46,267 = 44.8%

2.

Current ratio = $96,504 / $1,030 = 93.7

Acid-test ratio = $88,904 / $1,030 = 86.3

3.

Debt ratio = $1,030 / $122,312 = 0.8%

Equity ratio = $121,282 / $122,312 = 99.2%

4.

Current assets are 79% of total assets ($96,504 / $122,312)

Long-term assets are 21% of total assets ($25,808 / $122,312)