Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016
Question:
Frizell Company has the following comparative balance sheet data.
| FRIZELL COMPANY | ||
| | 2017 | 2016 |
| Cash | $15,000 | $30,000 |
| Accounts receivable (net) | 70,000 | 60,000 |
| Inventory | 60,000 | 50,000 |
| Plant assets (net) | 200,000 | 180,000 |
| | $345,000 | $320,000 |
| Accounts payable | $50,000 | $60,000 |
| Mortgage payable (6%) | 100,000 | 100,000 |
| Common stock, $10 par | 140,000 | 120,000 |
| Retained earnings | 55,000 | 40,000 |
| | $345,000 | $320,000 |
Additional information for 2017:
Net income was $25,000.
Sales on account were $410,000. Sales returns and allowances were $20,000.
Cost of goods sold was $198,000.
Instructions
Compute the following ratios at December 31, 2017.
Current ratio.
Acid-test ratio.
Accounts receivable turnover.
Inventory turnover.
Expert Answer:
Current ratio Current AssetsCurrent Liabilities 15000 70000 6000050000 145000... View the full answer
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
