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) |
