Description of this paper

Use the following financial data to compute the re...

Description

Solution


Question

Use the following financial data to compute the requested ratios: Income statement data Sales (all on credit) $650,000 Cost of goods sold 425,000 Income before taxes 78,000 Net income 54,600 Balance sheet items Ending Balances Beginning Balances Cash $ 19,500 $ 15,000 Accounts receivable (net) 65,000 60,000 Inventory 71,500 64,500 Plant and equipment (net) 195,000 183,900 Total assets $ 351,000 $ 323,400 Current liabilities $ 62,400 $ 52,700 Long-term notes payable 97,500 100,000 Calculate the following ratios for the current year. Showanswers to a, b, and e to 2 decimal places; show answers to c, d, and f to 1 decimal place: a. current ratio ___________ b. acid-test ratio ___________ c. accounts receivable turnover ___________ d. days? sales uncollected ___________ e. inventory turnover ___________ f. days? sales in inventory ___________ 2 points will be given for each correct answer. The maximum number of points that can be earned are 10.Show your computations.,Thank you very much !!

 

Paper#9583 | Written in 18-Jul-2015

Price : $25
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