1) What does "net" indicate with a. Accounts Receivable b. Long-term Assets c. Sales

2) In which year did Thompkin have the best current ratio?

3) Is Thompkin's 2018 current ratio better than its peers?

4) How much does Thompkin expect to collect from customers at year end 2017?

5) What would you estimate to be Thompkin's cash collections in 2018?

Thompkin Furniture - Selected Financial Data Selected balance sheet data 2018 2017 2016 Cash Marketable securities Accounts receivable, net Inventory Total current assets $2,800 400 6,700 6,000 15,900 $3,000 600 6,300 4,200 14,100 $4,200 500 5,100 3,200 13,000 Long-term assets (net) Total assets 6,900 $22,800 7,800 $21,900 9,200 $22,200 Accounts payable Short-term notes payable Total current liabilities $3,500 6,000 9,500 $2,300 4,600 6,900 $1,500 3.750 5,250 Total long-term liabilities Total liabilities 265 9,765 2,725 9,625 6,982 12,232 900 Stockholder Equity Paid In Capital Retained Earnings Total Stockholders' Equity 900 12,135 13,035 11,375 12,275 900 9,068 9,968 Total Liabilities and Stockholders' Equity $22,800 $21,900 $22,200 Selected income statement data 2018 2017 2016 Net sales revenue (assume all are credit sales) Cost of goods sold Gross Profit Operating expenses Interest expense Income before tax Income taxes Net Income $34,500 20,700 $13,800 11,500 150 $33,000 15,840 $17,160 13,500 255 $32,100 14,445 $17,655 13,700 300 $3,655 1,170 $2,485 $2.150 688 $1,462 $3,405 1,090 $2,315 2.3 Furniture industry averages Current ratio Quick ratio Days' inventory outstanding Days' sales outstanding Debt ratio Gross margin percentage 1 80.3 60.3 62% 51% Common Ratios Used in Financial Statement Analysis Net Working Capital = Current Assets - Current Liabilities Current Ratio Current Assets Current Liabilities Cash + ST Investments + Net Current Receivables Current Liabilities Quick (Acid-Test) Ratio = Inventory Turnover = Cost of Goods Sold Average Inventory Gross Profit Sales Gross Profit Percentage = Days' Sales in Receivables = Average Net Accounts Receivable One Day's Sales Debt Ratio Total Liabilities Total Assets Return on Assets Return on Equity Net Income Average Total Assets Net Income Average Common Stockholders' Equity Net Income - Preferred Dividends Average Number of Common Stock Shares Outstanding Earnings per Share II Days' Sales in Receivables: A/R Turnover = Net Credit Sales Ave Accts Rec Days' Sales = 365 A/R Turnover