Lendell Company has these comparative balance sheet data: 

Additional information for 2022: 

1. Net income was $25,000. 

2. Sales on account were $375,000. Sales returns and allowances amounted to $25,000. 

3. Cost of goods sold was $198,000. 

4. Net cash provided by operating activities was $48,000. 

5. Capital expenditures were $25,000, and cash dividends were $10,000. 

Instructions 

Compute the following ratios at December 31, 2022. 

a. Current ratio. 

b. Accounts receivable turnover. 

c. Average collection period. 

d. Inventory turnover. 

e. Days in inventory. 

f. Free cash flow.

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Lendell Company Balance Sheets December 31 2021 2022 $ 15,000 $ 30,000 Cash Accounts receivable (net) 70,000 60,000 50,000 180,000 Inventory Plant assets (net) 60,000 200,000 $345,000 $320,000 $ 50,000 $ 60,000 Accounts payable Mortgage payable (15%) Common stock, $10 par Retained earnings 100,000 100,000 120,000 40,000 140,000 55,000 $345,000 $320,000