Question

Calculating Select Ratios using Excel's ROUND and Basic Math Functions Games Galore has provided its condensed financial statements for the year ended December 31, 2016. The Controller has asked you to calculate liquidity, solvency, and profitability ratios that management can use decision making. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. • Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, -89" was entered, the formula would output the result from cell B9, or $514,500 in this example, • Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add).- (minus sign to subtract). * (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below on the Balance Sheet tab, if in a blank cell C15+C16" was entered, the formula would add the values from those cells and output the result, or 428,080 in this example. If using the other math symbols the result would output an appropriate answer for its function • ROUND function: Allows you to round a number or result of a formula calculation to a specific number of digits. The syntax of the ROUND function is "-ROUND(number num_digits) and returns the result of your formula rounded to a particular number of digits. The number argument can be a cell reference to a number or a formula itself that results in a number. The num_digits argument is the number of digits you want to round. The num_digits value rounds based on basis mathematical rounding rules, where anything below 5 will round down and anything 5 and above rounds up. Also, the num_digits value should be a positive value to round to any number of decimal places, while a negative value would round to the left of the decimal place, and a zero would round to the nearest whole number. If the value 1253,5693 was entered in cell A1, it can be used in the ROUND Tunction as the number reference. In this example, if the value in cell A1 should be rounded to 2 decimal places, in a new cell the function would be written as 'ROUND(A1,27" and would result in as 1253.57 in this example, If the number in cell A1 should be rounded to the nearest hundred place in a new cell the function would be written as "=ROUND(A1-2) and would result in 1,300 in this example.

Answer 1

Input view

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in G17 х fi D E E F G H 1 J K L M N 0 $ $ $ $ $ $ $ B с 2016 2015 185,000 $ 143,000 80,000 $ 59,000 104,000 $ 134,000 11,900 $ 5,880 380,900 $ 341,880 514,500 $ 407,000 895,400 $ 748,880 A 3 Balance Sheet 4 Cash 5 Accounts Receivable, Net 6 Inventory 7 Prepaid insurance 8 Total Current Assets 9 Property and equipment, Net 10 Total Assets 11 12 Current Liabilities 13 Long-term liabilities 14 Total liabilities 15 Contributed Capital 16 Retained Earnigns 17 Total Stockholders' Equity 18 Total liabilities and Stockholders' Equity 19 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before tax 28 Income Tax Expense 29 Net Income 30 Sheet26 Sheet27 Sheet28 $ $ $ $ $ $ $ $ 85,300 $ 96,800 284,000 $ 224,000 369,300 $ 320,800 299,000 $ 299,000 227,100 $ 129,080 526,100 $ 428,080 895,400 $ 748,880 O $ 3,031,000 $ 1,949,000 $ 1,082,000 $ 891,400 $ 190,600 $ 14,500 $ 176,100 $ 47,000 $ 129,100 Activate Windows Go to Settings to activate Windows Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 + READY 3 1 + 100% i Search the web and Windows O ENG US 03:10 16-09-20

output view

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in G53 fi A B с D E F G H 1 J K L M N 0 27 Income before tax 28 Income Tax Expense 29 Net Income $ $ $ 176,100 47,000 129,100 30 31 32 33 34 35 Current ratio (rounded to one decimal place) 36 Receivables turnover (rounded to two decimal places) 37 Average collection (rounded to the nearest whole day) 38 Inventory turnover (rounded to two decimal places) 39 Average day's in inventory (rounded to the nearest day) 40 4.5 to 1 43.61 times 8 days 16.38 times 22 days 41 42 0.7 to 1 13.1 times 43 Debt to equity (rounded to two decimal places) 44 Times interest earned (rounded to one decimal place) 45 46 47 48 Net margin ratio (rounded to one decimal place) 49 Gross margin ratio (rounded to one decimal place) 50 4.3% Percent 35.7% Percent 51 52 53 54 O Activate Windows Go to Settings to activate Windows Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 READY 3 1 + 100% i Search the web and Windows O ENG US 03:10 16-09-20

Formula view

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in E41 А B с D E F G 27 Income before tax 28 Income Tax Expense 29 Net Income =B25-B26 47000 =B27-B28 30 31 32 33 34 =ROUND(B8/B12,1) =ROUND(B21/((B5+C5)/2),2) =ROUND(365/B36,0) =ROUND(B22/((B6+C6)/2),2) =ROUND(365/B38,0) to 1 times days times days 35 Current ratio (rounded to one decimal place) 36 Receivables turnover (rounded to two decimal places) 37 Average collection (rounded to the nearest whole day) 38 Inventory turnover (rounded to two decimal places) 39 Average day's in inventory (rounded to the nearest day) 40 41 42 43 Debt to equity (rounded to two decimal places) 44 Times interest earned (rounded to one decimal place) 45 46 47 48 Net margin ratio (rounded to one decimal place) 49 Gross margin ratio (rounded to one decimal place) 50 =ROUND(B14/B17,2) =ROUND(B25/B26,1) to 1 times =ROUND(B29/B21,3) =ROUND(B23/B21,3) Percent Percent 51 52 53 54 Activate Windows Go to Settings to activate Windows. Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 + READY 3 + 100% Search the web and Windows O ENG US 03:11 16-09-20