Rinker Corporation?s comparative balance sheet is presented below.

Rinker?s 2021 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 2021.

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

Transcribed Image Text:

RINKER CORPORATION Balance Sheet December 31 2021 2020 $ 5,300 $ 3,700 Cash Accounts receivable 21,200 23,400 Inventory Land 9,000 7,000 20,000 26,000 Buildings Accumulated depreciation-buildings 70,000 (15,000) 70,000 (10,000) Total $120,100 $110,500 $ 10,370 $ 31,100 Accounts payable Common shares 75,000 69,000 Retained earnings 25,130 20,000 Total $110,500 $120,100