1. Compute the following ratios for both years. Current ratio T 2. Quick ratio 3. Inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Compute the following ratios for both years. Current ratio T 2. Quick ratio 3. Inventory turnover in days 4. Average Collection Period Income Statement Data Net Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income Other Expense (interest) Earnings Before Income Tax Income Taxes Net Income Dividends Paid Balance Sheet Data Assets Cash Receivables (net) Inventory Buildings, and Equipment (net) Intangible Assets Total Assets 2021 $1,500,000 934,000 $ 566,000 376,000 $ 190,000 15,000 $ 175,000 66,000 $ 109,000 48,000 2021 $ 30,000 130,000 170,000 650,000 20,000 $1,000,000 2020 $1,200,000 741,000 $ 459,000 277,000 $ 182,000 12,000 $ 170,000 71,000 $ 99,000 42,000 2020 $ 10,000 90,000 113,000 547,000 20,000 $780,000 Liabilities and Stockholders' Equity Trade Notes and Accounts Payable Miscellaneous Current Liabilities 5% Bonds Payable Common Stock, $10 Par Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity Note: Market price of stock end-of-each year: $81 2021 $ 100,000 50,000 300,000 100,000 51,000 399,000 $1,000,000 $68 2020 $ 40,000 11,000 240,000 100,000 51,000 338,000 $780,000 1. Compute the following ratios for both years. Current ratio T 2. Quick ratio 3. Inventory turnover in days 4. Average Collection Period Income Statement Data Net Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income Other Expense (interest) Earnings Before Income Tax Income Taxes Net Income Dividends Paid Balance Sheet Data Assets Cash Receivables (net) Inventory Buildings, and Equipment (net) Intangible Assets Total Assets 2021 $1,500,000 934,000 $ 566,000 376,000 $ 190,000 15,000 $ 175,000 66,000 $ 109,000 48,000 2021 $ 30,000 130,000 170,000 650,000 20,000 $1,000,000 2020 $1,200,000 741,000 $ 459,000 277,000 $ 182,000 12,000 $ 170,000 71,000 $ 99,000 42,000 2020 $ 10,000 90,000 113,000 547,000 20,000 $780,000 Liabilities and Stockholders' Equity Trade Notes and Accounts Payable Miscellaneous Current Liabilities 5% Bonds Payable Common Stock, $10 Par Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity Note: Market price of stock end-of-each year: $81 2021 $ 100,000 50,000 300,000 100,000 51,000 399,000 $1,000,000 $68 2020 $ 40,000 11,000 240,000 100,000 51,000 338,000 $780,000
Expert Answer:
Answer rating: 100% (QA)
1 Current Ratio For 2021 Current Assets Cash Receivables net Inventory 30000 130000 170000 330000 Cu... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
Posted Date:
Students also viewed these finance questions
-
The last two years of financial statements for Pamplin, Inc., are as follows: Pamplin, Inc. Balance Sheets, December 31, 2015 and 2016 ($thousands) Pamplin, Inc. Income Statements for the Years Ended...
-
1. If I have 17.0 liters of gas at a temperature of 67.0 C and a pressure of 88.89 atm, what will be the pressure of the gas if I raise the temperature to 94.0 C and decrease the volume to 12.0 L? 2....
-
Compute the following ratios for 2018 and 2019. Show your solution. 1. Current Ratio 9. Interest Coverage Ratio 2. Quick Ratio 10. Gross Profit Ratio 3. A/R Turnover...
-
A particle of mass m moves in a certain plane P due to a force F whose magnitude is constant and whose vector rotates in that plane with a constant angular velocity . Assuming the particle to be...
-
If the speed of a car is increased by 50% by what factor will its minimum braking distance be increased, assuming all else is the same? Ignore the drivers reaction time.
-
For the given loading, determine the zero-force members in the truss shown. Ho eler le1
-
Consider a publicly held company whose products you are familiar with. Some examples might include: Access the companys public website and search for its most recent annual report. (Some companies...
-
On December 31, Trinkets Supply Company noted the following transactions that occurred during 2011, some or all of which might require adjustment to the books. (a) Payment of $4,300 to suppliers was...
-
Assume that Considine Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D 0 = $0.90; P 0 = $22.50; and g = 7.00% (constant). Based...
-
Consider the stirred-tank reactor shown in Fig. P5-5. The reaction occurring is A ? B and it proceeds at a rate r = kCo where r = (moles A reacting)/(volume)(time) k = reaction rate constant Co (t) =...
-
Define lines shown in Figure1, and then draw it using DDA (X1,1) (X1,y1) (X2,y2) (X2, y2) Figure1 (X1,y1) (X2,y2) (X1, y1) (X2,y2)
-
Eco-friendly practices are becoming the norm as properties focus on renewable energy resources and water scarcity. Did you uncover a written environmental policy in place outlining their commitments...
-
1. Nail & Hammer Shack purchased 246 table fans of a particular make. The unit cost was $29.50 and the regular selling price was $60.00 each. The store sold 122 of them at the regular selling price....
-
A firm makes a product on a single machine. Leasing the machine costs $2,000, running the machine for an hour costs $60, the machine processes 8 units of the product in one hour, & the product can be...
-
The IRR of the following cash flows is Year 0 1 0723 Cash Flow -$10,104 5,500 4,700 4.900
-
ABC company deals in agriculture machines. Due to severe price competition in the market, the company has been experiencing a decrease in revenues in recent times. The situation led the company to...
-
a) What is the importance of the central bank? b) Describe central bank independence and its importance. Mention at least Four important. Explain at least two importance.
-
Given the table below, about how much force does the rocket engine exert on the 4.0 kg payload? Distance traveled with rocket engine firing (m) Payload final velocity (m/s) 500 320 490 310 1020 450...
-
Last year Baker-Huggy, Inc. had sales of $500,000, fixed costs of $100,000 and net operating income (NOI) of $30,000. If sales increase by 20 percent, by how much will the firm's NOI increase? What...
-
Describe the information contained in Figure 7.2, identifying which securities have performed the best over long periods of time. Some investors with long investment time horizons invest exclusively...
-
The liabilities and stockholders' equity for Campbell Industries are as follows: Accounts payable .............................................. $ 500,000 Notes payable...
-
From the following data, determine the total actual costs incurred for direct material, direct labor, and variable overhead. Direct material Price variance. Quantity variance Standard Costs $55,000...
-
summary of Glendale Company's manufacturing variance report for May 2016 follows: Standard material cost per unit of product is 0.5 pounds at \($8.40\) per pound, and standard direct labor cost is...
-
The following summary data relate to the operations of Dobson Company for ax April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Required :...
Study smarter with the SolutionInn App