Adrian Express' 2018 income statement reports sales of $12,915,000, cost of goods sold of $7,250,000, and net
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Question:
Adrian Express' 2018 income statement reports sales of $12,915,000, cost of goods sold of $7,250,000, and net income of $1,500,000.
Balance information is provided in the following table.
ADRIÁN EXPRESS Balance Sheets December 31, 2018 and 2017 | ||||
2018 | 2017 | |||
Assets | ||||
Current assets: | ||||
Money | ps | 500,000 | ps | 660.000 |
accounts receivable | 1,200,000 | 900,000 | ||
Inventory | 1,600,000 | 1,300,000 | ||
long term assets | 4,700,000 | 4,140,000 | ||
total assets | ps | 8,000,000 | ps | 7,000,000 |
Liabilities and Equity | ||||
current liabilities | ps | 1,920,000 | ps | 1,560,000 |
Long term passives | 2,290,000 | 2,300,000 | ||
Common actions | 1,800,000 | 1,800,000 | ||
Retained earnings | 1,990,000 | 1,340,000 | ||
Total liabilities and stockholders' equity | ps | 8,000,000 | ps | 7,000,000 |
The industry averages for the next four risk indices are as follows:
Average collection period | 25 days | |
Average days in inventory | 60 days | |
Radio actual | 2 a 1 | |
debt ratio | 50% | |
Required:
Calculate the four risk indices listed above for Adrian Express in 2018. (Use 365 days in a year.)
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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