Required: Calculate the following ratios for 2024. Note: Consider 365 days a year. Do not round...

Transcribed Image Text:

Required: Calculate the following ratios for 2024. Note: Consider 365 days a year. Do not round intermediate calculations and round your 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 % Financial statements for Askew Industries for 2024 are shown below (in thousands): 2024 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income $ 9,000 (6,300) 2,700 (2,100) (200) (100) $ 300 Comparative Balance Sheets December 31 2024 2023 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 600 600 800 2,000 $ 500 $ 4,000 Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained earnings $ 1,100 1,400 600 400 600 2,100 $ 3,600 $ 850 1,400 600 900 750 $ 4,000 $ 3,600 Required: Calculate the following ratios for 2024. Note: Consider 365 days a year. Do not round intermediate calculations and round your 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 % Financial statements for Askew Industries for 2024 are shown below (in thousands): 2024 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income $ 9,000 (6,300) 2,700 (2,100) (200) (100) $ 300 Comparative Balance Sheets December 31 2024 2023 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 600 600 800 2,000 $ 500 $ 4,000 Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained earnings $ 1,100 1,400 600 400 600 2,100 $ 3,600 $ 850 1,400 600 900 750 $ 4,000 $ 3,600