Based on the information in Table 4-2, the inventory turnover ratio is Table 4-2 Assets: Cash...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Based on the information in Table 4-2, the inventory turnover ratio is Table 4-2 Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Drummond Company Balance Sheet Long-term debt Common Stock (100,000 shares) Retained Earnings Total liabilities and owner's equity Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income 2,800,000 (1,087,500) $400,000 1,415,000 1,847,500 24,000 3,686,500 1,712,500 $5,399,000 $600,000 875,000 92,000 $1,567,000 900,000 700,000 2,232,000 $5,399,000 $6,375,000 (4,375,000) (1,000,000) (135,000) (100,000) $765,000 (306,000) $459,000 Based on the information in Table 4-2, the inventory turnover ratio is Table 4-2 Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Drummond Company Balance Sheet Long-term debt Common Stock (100,000 shares) Retained Earnings Total liabilities and owner's equity Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income 2,800,000 (1,087,500) $400,000 1,415,000 1,847,500 24,000 3,686,500 1,712,500 $5,399,000 $600,000 875,000 92,000 $1,567,000 900,000 700,000 2,232,000 $5,399,000 $6,375,000 (4,375,000) (1,000,000) (135,000) (100,000) $765,000 (306,000) $459,000
Expert Answer:
Related Book For
Business Analysis Valuation Using Financial Statements
ISBN: 978-1111972301
5th edition
Authors: Paul M. Healy
Posted Date:
Students also viewed these finance questions
-
A company is implementing Dynamics 365 Supply Chain Management. The company plans to implement the solution in a phased approach across several incremental projects. The project manager needs a...
-
The Faculty of Business at Old Renowned University wishes to buy new personal computers for its 20 full-time faculty members. The university is a nonprofit institution and does not pay any taxes. The...
-
Read the definitions of NOPREFIX(A) and NOEXTEND(A) in Problem 1.40. a. Show that the class of CFLs is not closed under NOPREFIX. b. Show that the class of CFLs is not closed under NOEXTEND. Problem...
-
Diageo North America, Inc., the owner of the Bulleit brand family of whiskeys, sued competitor W.J. Deutsch & Sons Ltd. for allegedly infringing upon the trade dress of Diageos Bulleit bottles....
-
In September 2009, The Walt Disney Company announced that it would acquire Marvel Entertainment in a $4 billion cash and common stock deal. On a per-share basis, the consideration given by Disney to...
-
Write a three page paper on Compare and contrast Online Analytic Processing (OLAP) and Online Transaction Processing (OLTP); also discuss Codds rules for TP databases and OLAP databases. Cite any...
-
1. Suppose Siscos altercation occurred while he was en route to his house during an unpaid one-hour lunch break. Would Sisco still be eligible for compensation? Why or why not? 2. Would Sisco have...
-
2. A 250g copper calorimeter can contains 150g of oil at 20C. To the oil is added 85g of aluminum at 350C. What will be the temperature of the system after equilibrium is established? (aluminum...
-
Revenue Sales Discounts Sales Returns Freight Cost of Goods Sold $62,500 $3,900 $2,400 $1,200 Net Sales $55,000 $7,800 Gross Profit Gross Profit Margin % Given the information provided, what is the...
-
Shahla Company bought a building for $86,000 cash and the land on which it was located for $113,000 cash. The company paid transfer costs of $15,000 ($4,000 for the building and $11,000 for the...
-
On January 1, Barton Brothers, Incorporated started the year with a $695,000 balance in Retained Earnings and a $606,000 balance in Common Stock. During the year, the company reported net income of...
-
You are provided with the following data. Sales Variable costs: Direct Materials Direct Labor Manufacturing Overhead Variable selling Variable administrative Fixed costs: Fixed selling Fixed...
-
Muiz Berhad is a food product manufacturing company. The following is information related to production costs. Variable costs per unit Direct raw materials Direct labor Factory overhead Annual fixed...
-
The 30 kg crate shown in Figure 2 rests on a horizontal plane for which the coefficient of kinetic friction is ik = 0.3. If the crate is subjected to a 250 N towing force as shown, calculate the...
-
During the year land was revalued and the surplus reported as Revaluation surplus; and an asset costing 80,000, written down to 38,000, was sold for 40,000. Identify the cost of any non-current...
-
A target company is currently valued at $50 in the market. A potential acquirer believes that it can add value in two ways: $15 of value can be added through better working capital management, and an...
-
A banker asserts, I avoid lending to companies with negative cash from operations because they are too risky. Is this a sensible lending policy?
-
Joe Investor asserts, A company cannot grow faster than its sustainable growth rate. True or false? Explain why.
-
Assume a stock is priced at $100; calculate its intrinsic value based on the Gordon growth DDM, with the following assumptions: D0 = $3, g = 6 percent, and k = 10 percent. Indicate whether investors...
-
The simplest sequential description of the Ewens sampling formula is called the Chinese restaurant process. The first customer arrives and is seated at a table. After \(n\) customers have been...
-
Suppose Borg Corporation was operating at 88 percent of capacity. What would sales be at full capacity? What is the EFN in this case? What is the capital intensity ratio at full capacity?
Study smarter with the SolutionInn App