Exercise 18-09

Lendell Company has these comparative balance sheet data:

Lendell Company Balance Sheets December 31
		2020			2019
Cash		$ 15,000			$ 30,000
Accounts receivable (net)		71,000			60,000
Inventory		61,000			50,000
Plant assets (net)		197,000			175,000
		$344,000			$315,000
Accounts payable		$50,000			$59,200
Mortgage payable (15%)		108,000			108,000
Common stock, $10 par		138,500			124,500
Retained earnings		47,500			23,300
		$344,000			$315,000

Additional information for 2020:

1.		Net income was $25,700.
2.		Sales on account were $412,500. Sales returns and allowances amounted to $19,500.
3.		Cost of goods sold was $199,800.
4.		Net cash provided by operating activities was $45,600.
5.		Capital expenditures were $23,800, and cash dividends were $10,100.

Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.)

(a)		Current ratio			:1
(b)		Accounts receivable turnover			times
(c)		Average collection period			days
(d)		Inventory turnover			times
(e)		Days in inventory			days
(f)		Free cash flow		$

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