The following are the financial statements of Parker Company for the year ended December 31, 2023....

 

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The following are the financial statements of Parker Company for the year ended December 31, 2023. All sales were on credit. PARKER COMPANY Balance Sheet December 31, 2023 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets PARKER COMPANY Income Statement For the Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses. Interest expense Income before taxes. Income tax expense Net income Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock $ 18,000 8,600 33,400 32,150 2,450 150,300 Retained earnings $ 244,900 Total liabilities and equity Inventory, $54,900; Total assets, $189,400; . Common stock, $86,000; and Retained earnings, $39,194 $452,600 207,950 154,650 99, 100 4,800 50, 750 20,444 $ 30,306 $ 18,500 5,000 3,500 62,400 86,000 69,500 $ 244,900 Important note: In order to complete some parts of this problem you will also need to use Parker's selected balance sheet amounts at December 31, 2022 (the prior year) as follows: Required: Use the information presented above to compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) The following are the financial statements of Parker Company for the year ended December 31, 2023. All sales were on credit. PARKER COMPANY Balance Sheet December 31, 2023 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets PARKER COMPANY Income Statement For the Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses. Interest expense Income before taxes. Income tax expense Net income Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock $ 18,000 8,600 33,400 32,150 2,450 150,300 Retained earnings $ 244,900 Total liabilities and equity Inventory, $54,900; Total assets, $189,400; . Common stock, $86,000; and Retained earnings, $39,194 $452,600 207,950 154,650 99, 100 4,800 50, 750 20,444 $ 30,306 $ 18,500 5,000 3,500 62,400 86,000 69,500 $ 244,900 Important note: In order to complete some parts of this problem you will also need to use Parker's selected balance sheet amounts at December 31, 2022 (the prior year) as follows: Required: Use the information presented above to compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.)

Answer rating: 100% (QA)

To compute the requested ratios and performance measures well use the given financial information Lets calculate each one 1 Current Ratio Current Rati... View the full answer