Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net...

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Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income $ 8,700 (6,175) 2,525 (1,975) (150) (160) $ 240 Comparative Balance Sheets Assets December 31 2024 2023 Cash Accounts receivable Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained earnings $ 550 $ 450 550 350 750 1,500 $ 3,350 $ 800 1,150 550 550 1,600 $ 2,950 $ 550 1,150 550 850 700 $ 3,350 $ 2,950 Required: Calculate the following ratios for 2024. Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places. 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio 4. Average collection period 5. Asset turnover ratio 6. Profit margin on sales 7. Return on assets 8. Return on equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) times days times days % % % times % Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income $ 8,700 (6,175) 2,525 (1,975) (150) (160) $ 240 Comparative Balance Sheets Assets December 31 2024 2023 Cash Accounts receivable Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained earnings $ 550 $ 450 550 350 750 1,500 $ 3,350 $ 800 1,150 550 550 1,600 $ 2,950 $ 550 1,150 550 850 700 $ 3,350 $ 2,950 Required: Calculate the following ratios for 2024. Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places. 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio 4. Average collection period 5. Asset turnover ratio 6. Profit margin on sales 7. Return on assets 8. Return on equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) times days times days % % % times %

Answer rating: 100% (QA)

To calculate the ratios for 2024 we will use the following formulas 1 Inventory turnover ratio Inventory turnover ratio Cost of goods sold Average inv... View the full answer