Extracted text: b. Compute the following Ratios: i. Current Ratio ii. Acid-test Ratio iii. Accounts receivable turnover iv. Average Collection period v. Profit Margin vi. Debt to Total Assets vii. Return on Asset viii. Times Interest Earned Explain to the Manager, what the different classes of ratios measure and identify the bases of comparison on financial information. C.
Extracted text: Problem 2 Financial Statements, Closing Entries & Ratio Analysis You are asked to support Telcel Company with its Financial Reporting requirements. The Senior Manager provided you with the following Adjusted Trial Balance: Telcel Company TRIAL BALANCE (Adjusted) 31-Mar-21 Debit 10,450 Credit Cash Accounts Receivable 16,800 Prepaid Rent Supplies 7,600 1,500 Inventory Buildings Equipment Accumulated Depreciation – Equipment Accumulated Depreciation – Buildings Accounts Payable Notes Payable (due 2024) Unearned Service Revenue 6,400 125,000 32,000 7,200 21,000 13,900 49,000 9,450 Share Capital 76,000 Retained Earnings 31,650 Dividends 8,000 Service Revenue 68,400 Advertising Expense Salaries and Wages Expense 1,750 47,800 Utilities Expense Supplies Expense 5,400 2,600 Depreciation Expense Interest Expense 8,400 1,100 Rent Expense 1,800 Total 276,600 276,600 Additional Information: 2020 Data Accounts Receivable $8,100 Total Assets $158,930