Net sales RINGLING COMPANY Income Statement For the Year Ended December 31, 2824 Cost of goods...

 

  

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Net sales RINGLING COMPANY Income Statement For the Year Ended December 31, 2824 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,515,000 193,000 33,000 $8,730,000 5,365,000 3,365,000 343,000 2,084,080 $1,281,000 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets RINGLING COMPANY Balance Sheets December 31 2824 2823 Liabilities and Stockholders' Equity $147,000 $197,000 705,000 725,000 1,328,000 998,eee 93,000 68,000 1,065,000 1,065,000 (386,980) (193,000) $2,944,000 $2,852,000 Current liabilities: Accounts payable $98,000 $74,000 Interest payable Income tax payable Long-term liabilities: Notes payable 3,300 31,500 29,388 438,000 430,000 Stockholders' equity: Common stock 530,000 530,000 Retained earnings 1,854,500 1,785,480 Total liabilities and stockholders' equity $2,944,000 $2,852,000 Required: Assuming that all sales were on account, calculate the following risk ratios for 2024, Risk Ratios 1. Receivables turnover ratio times 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory days times days 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 18. Times interest earned ratio times Net sales RINGLING COMPANY Income Statement For the Year Ended December 31, 2824 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,515,000 193,000 33,000 $8,730,000 5,365,000 3,365,000 343,000 2,084,080 $1,281,000 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets RINGLING COMPANY Balance Sheets December 31 2824 2823 Liabilities and Stockholders' Equity $147,000 $197,000 705,000 725,000 1,328,000 998,eee 93,000 68,000 1,065,000 1,065,000 (386,980) (193,000) $2,944,000 $2,852,000 Current liabilities: Accounts payable $98,000 $74,000 Interest payable Income tax payable Long-term liabilities: Notes payable 3,300 31,500 29,388 438,000 430,000 Stockholders' equity: Common stock 530,000 530,000 Retained earnings 1,854,500 1,785,480 Total liabilities and stockholders' equity $2,944,000 $2,852,000 Required: Assuming that all sales were on account, calculate the following risk ratios for 2024, Risk Ratios 1. Receivables turnover ratio times 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory days times days 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 18. Times interest earned ratio times

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It appears you are requesting the calculation of certain risk ratios for a company for the year 2024 based on the provided income statement and balance sheet Ill walk you through each of the requested ... View the full answer