Question: Selected comparative financial statement data for Kokomo Inc. are shown below. KOKOMO INC. Statement of Financial Position (partial) December 31 (in thousands) 2021 2020 2019

Selected comparative financial statement data for Kokomo Inc. are shown below.

KOKOMO INC. Statement of Financial Position (partial) December 31 (in thousands)
2021 2020 2019
Current assets
Cash $ 30 $ 91 $ 60
Trading investments 55 60 40
Accounts receivable, net 679 588 496
Inventory 625 529 570
Prepaid expenses 41 52 29
Total current assets $ 1,430 $ 1,320 $ 1,195
Total current liabilities $ 877 $ 825 $ 757

(in thousands) 2021 2020 2019
Allowance for doubtful accounts $ 50 $ 45 $ 40
Credit sales 4,159 3,964 3,686
Cost of goods sold 2,908 2,666 2,343

Calculate all possible liquidity ratios for 2021 and 2020. (Round current ratio to 2 decimal places e.g. 2.66. Round receivables turnover and inventory turnover to 1 decimal place e.g. 6.2. Round collection period and days sales in inventory to 0 decimal places e.g. 1,266. Enter working capital amounts in thousands e.g. 525.)

2021 2020
Working capital
Current ratio :1 :1
Receivables turnover times times
Collection period days days
Inventory turnover times times
Days sales in inventory enter days sales in inventory rounded to 0 decimal places days enter days sales in inventory rounded to 0 decimal places days

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!