Question: Hello! I am having a hard time calculating the Average Collection Period and Fixed Asset Turnover. Explanations would be great, thank you! SNIDER CORPORATION Balance
Hello! I am having a hard time calculating the Average Collection Period and Fixed Asset Turnover. Explanations would be great, thank you!
| SNIDER CORPORATION Balance Sheet December 31, 2010 Assets Current assets: Cash $58,700 Marketable securities 23,200 Accounts receivable (net) 230,000 Inventory 247,000 Total current assets $558,900 Investments 64,100 Plant and equipment. 695,000 Less: Accumulated depreciation (216,000) Net plant and equipment 479,000 Total assets $1,102,000 Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $96,900 Notes payable 75,700 Accrued taxes 16,400 Total current liabilities 189,000
Long-term liabilities:
Bonds payable 158,700 Total liabilities $347,700
Stockholders' equity
Preferred stock, $50 par value 100,000 Common stock, $1 par value 80,000 Capital paid in excess of par 190,000 Retained earnings 384,300
Total stockholders' equity 754,300 Total liabilities and stockholders' equity $1,102,000 |
| SNIDER CORPORATION Income Statement For the Year Ending December 31, 2010
Sales (on credit) $2,024,000 Less: Cost of goods sold 1,354,000 Gross profit 670,000 Less: Selling and administrative expenses 511,000* Operating profit (EBIT) 159,000 Less: Interest expense 31,600 Earnings before taxes (EBT) 127,400 Less: Taxes 89,400 Earnings after taxes (EAT) $38,000
Receivable turnover: 8.8 Average Collection Period __??__ Inventory Turnover 8.19 Fixed Asset Turnover __??___ Total Asset Turnover 1.84 |
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