Mirabel Corporation's financial statements for 2020 follow: Instructions
a) If Mirabel were preparing common-size financial statements, calculate the following:
i. Cost of goods sold
ii. Operating expenses
iii. Net Income
b) Calculate the following liquidity ratios for Mirabel:
i. Current ratio
ii. Quick ratio
iii. Days Accounts receivable (assume average assets are the same as year-end assets)
iv. Days Inventory (assume average assets are the same as year-end assets)
c) Comment on Mirabel's performance.

Question

Mirabel Corporation's financial statements for 2020 follow:  Instructions 
a) If Mirabel were preparing common-size financial statements, calculate the following:
i. Cost of goods sold
ii. Operating expenses
iii. Net Income
b) Calculate the following liquidity ratios for Mirabel:
i. Current ratio
ii. Quick ratio
iii. Days Accounts receivable (assume average assets are the same as year-end assets)
iv. Days Inventory (assume average assets are the same as year-end assets)
c) Comment on Mirabel's performance.

Quizplus · Accepted Answer

The Answer of Mirabel Corporation's financial statements for 2020 follow:  Instructions 
a) If Mirabel were preparing common-size financial statements, calculate the following:
i. Cost of goods sold
ii. Operating expenses
iii. Net Income
b) Calculate the following liquidity ratios for Mirabel:
i. Current ratio
ii. Quick ratio
iii. Days Accounts receivable (assume average assets are the same as year-end assets)
iv. Days Inventory (assume average assets are the same as year-end assets)
c) Comment on Mirabel's performance.

Mirabel Corporation's Financial Statements for 2020 Follow: Instructions