The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC...
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The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the Year Ended December 31, 2024 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $8,890,000 5,445,000 3,445,000 $1,595,000 209,000 49,000 359,000 2,212,000 $1,233,000 THE ATHLETIC ATTIC Balance Sheets December 31 Assets Current assets: Cash. Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Common stock 2024 2023 $163,000 785,000 $213,000 805,000 1,400,000 1,070,000 109,000 84,000 1,145,000 1,145,000 (418,000) (209,000) $3,184,000 $3,108,000 $114,000 $90,000 4,900 39,500 30,900 590,000 590,000 690,000 690,000 1,750,500 1,702,200 $3,108,000 Stockholders' equity: Retained earnings Total liabilities and stockholders' equity $3,184,000 Supplies 109,000 84,000 Long-term assets: Equipment 1,145,000 1,145,000 Less: Accumulated depreciation (418,000) (209,000) Total assets $3,184,000 $3,108,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $114,000 $90,000 Interest payable 4,900 39,500 30,900 590,000 590,000 Common stock Retained earnings 690,000 690,000 1,750,500 1,702,200 $3,184,000 $3,108,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Total liabilities and stockholders' equity Required: Assuming that all sales were on account, calculate the following risk ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period times days 3. Inventory turnover ration 4. Average days in inventory times days 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest eamed ratio %6 times The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the Year Ended December 31, 2024 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $8,890,000 5,445,000 3,445,000 $1,595,000 209,000 49,000 359,000 2,212,000 $1,233,000 THE ATHLETIC ATTIC Balance Sheets December 31 Assets Current assets: Cash. Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Common stock 2024 2023 $163,000 785,000 $213,000 805,000 1,400,000 1,070,000 109,000 84,000 1,145,000 1,145,000 (418,000) (209,000) $3,184,000 $3,108,000 $114,000 $90,000 4,900 39,500 30,900 590,000 590,000 690,000 690,000 1,750,500 1,702,200 $3,108,000 Stockholders' equity: Retained earnings Total liabilities and stockholders' equity $3,184,000 Supplies 109,000 84,000 Long-term assets: Equipment 1,145,000 1,145,000 Less: Accumulated depreciation (418,000) (209,000) Total assets $3,184,000 $3,108,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $114,000 $90,000 Interest payable 4,900 39,500 30,900 590,000 590,000 Common stock Retained earnings 690,000 690,000 1,750,500 1,702,200 $3,184,000 $3,108,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Total liabilities and stockholders' equity Required: Assuming that all sales were on account, calculate the following risk ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period times days 3. Inventory turnover ration 4. Average days in inventory times days 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest eamed ratio %6 times
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Related Book For
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
Posted Date:
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