Problem #1

The following balance sheet and income statement data is given:

	31-Dec
	Yr 2021	Yr 2020
Cash	$4,300	$3,700
Accounts receivable (net)	22,000	23,400
Inventories	10,000	7,000
Plant assets (net)	75,000	86,000
Total assets	111,300	120,100
Accounts payable	12,370	11,100
Bonds payable	70,000	70,000
Total liabilities	82,370	81,100
Common stock, $10 par	65,000	59,000
Paid-in capital	10,000	10,000
Retained earnings	24,300	20,600
Total stockholders equity	99,300	89,600
Net credit sales	100,000
Cost of goods sold	60,350
Gross profit	39,650
Net income	14,000

REQUIRED:

Compute the following ratios for 2021.

NOTE: Copy and paste the information below into the answer box first and then show your calculation steps for this problem to receive credits.

(1) Accounts receivable turnover=____________________

(2) Inventory turnover=__________________

(3) Accounts payable turnover=__________________

(4) Cash conversion cycle=__________________

(5) PPE turnover=__________________

(6) Gross profit margin=__________________

(7) Return on assets=__________________

(8) Return on equity=__________________

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