Rinker Corporations comparative balance sheet is presented below Rinkers 2024 income statement included net sales of $120,000,
Question:
Rinker Corporation’s comparative balance sheet is presented below
Rinker’s 2024 income statement included net sales of $120,000, cost of goods sold of $70,000, and profit of $14,000.
Instructions
Calculate the following ratios for 2024.
a. Current ratio
b. Acid-test ratio
c. Receivables turnover
d. Collection period
e. Inventory turnover
f. Days sales in inventory
g. Profit margin
h. Asset turnover
i. Return on assets
j. Return on equity
k. Debt to total assets
Cash Accounts receivable Inventory Land RINKER CORPORATION Balance Sheet December 31 Buildings Accumulated depreciation-buildings Total Accounts payable Common shares Retained earnings Total 2024 $ 5,300 21,200 9,000 20,000 70,000 (15,000) $110,500 $ 10,370 75,000 25,130 $110,500 2023 $ 3,700 23,400 7,000 26,000 70,000 (10,000) $120,100 $ 31,100 69,000 20,000 $120,100
Step by Step Answer:
a b c d Collection Period 365 5...View the full answer
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Related Video
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis. To compute DSO, divide the average accounts receivable during a given period by the total value of credit sales during the same period and multiply the result by the number of days in the period being measured.
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