Question: If you have this unsorted information from the general ledger of CAM Company as follows: net plants and equipment 420000 net sales 960000 accounts payables

If you have this unsorted information from the general ledger of CAM Company as follows:

net plants and equipment

420000

net sales

960000

accounts payables

120000

bonds

250000

inventory

250000

retained earnings

120000

COMMON SHARES CAPITAL

350000

operation expenses

169000

accounts receivables

160000

short term investments

50000

Interests

135000

long term loans

250000

copyrights

120000

accruals

35000

shot term loans

50000

cash

75000

long term investments

100000

tax

25%

cost of goods sold

358000

purchases

250000

After sorting this information as income statements and balance sheets, find the answers to the below questions:

  1. Days sales outstanding (average collection period).
  2. Average payment period.
  3. Average age of inventory.
  4. Times interest earned.
  5. Total assets turnover.
  6. Debt to equity ratio.
  7. Quick ratio.
  8. Return on assets (ROA).
  9. Return on equity (ROE).
  10. If the firm decided to decrease the debt ratio to be 50%as the new target, how much the total liabilities must be decreased to reach the target ratio?

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