The following information related to Blanton Corporation: Income Statement information - for the year ending December...
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The following information related to Blanton Corporation: Income Statement information - for the year ending December 31, 2020: Net Sales Cost of Goods Sold $5,568,122 Interest expense Income tax expense Total operating expenses Balance sheet information- December 31: 2,122 248 248 256 685 442 1,700,000 Cash and short-term investments Accounts Receivable (net) Inventories Prepaid Expenses and other current assets Current portion of long-term debt Accounts payable Dividends Payable Income taxes payable Bond payable Statement of Cash Flow information -for the year ending December 31, 2020: Cash Flows from Operating Activates Cash Flows from Financing Activities 2020 $789,215 388,245 257,217 169,568 181,672 288,286 254,216 312,423 978 456 2019 $621 842 442,268 242 258 293,139 145,135 376,562 268,850 213,285 745,855 $664,268 1,282,523 Required: Use the above information to calculate the following for Blanton Corporation 1. Operating Cash Flow to Current Liabilitios ratio in 2020 (Comment on this result, is it good or bad, why?). or the year ending December 31, 2020: Cash Flows from Operating Activates Cash Flows from Financing Activities Required: Use the above information to calculate the following for Blanton Corporation: 1. Operating Cash Flow to Current Liabilities ratio in 2020. (Comment on this result, is it good or bad, why?). 2. Day's inventory outstanding at the end of 2020. 3. Days accounts payable outstanding at the end of 2020. 4. 2020 accounts payable Turnover ratio. 5. Interest Coverage Ratio at the end of 2020. (Comment on this result, is it the higher the better or vice versa? Why?). Note: Show your calculations clearly. For the toolbar, press ALT+F10 (P) or ALT+FN+F10 (Mac). BIU S E vE vA v Paragraph Arial 10pt The following information related to Blanton Corporation: Income Statement information - for the year ending December 31, 2020: Net Sales Cost of Goods Sold $5,568,122 Interest expense Income tax expense Total operating expenses Balance sheet information- December 31: 2,122 248 248 256 685 442 1,700,000 Cash and short-term investments Accounts Receivable (net) Inventories Prepaid Expenses and other current assets Current portion of long-term debt Accounts payable Dividends Payable Income taxes payable Bond payable Statement of Cash Flow information -for the year ending December 31, 2020: Cash Flows from Operating Activates Cash Flows from Financing Activities 2020 $789,215 388,245 257,217 169,568 181,672 288,286 254,216 312,423 978 456 2019 $621 842 442,268 242 258 293,139 145,135 376,562 268,850 213,285 745,855 $664,268 1,282,523 Required: Use the above information to calculate the following for Blanton Corporation 1. Operating Cash Flow to Current Liabilitios ratio in 2020 (Comment on this result, is it good or bad, why?). or the year ending December 31, 2020: Cash Flows from Operating Activates Cash Flows from Financing Activities Required: Use the above information to calculate the following for Blanton Corporation: 1. Operating Cash Flow to Current Liabilities ratio in 2020. (Comment on this result, is it good or bad, why?). 2. Day's inventory outstanding at the end of 2020. 3. Days accounts payable outstanding at the end of 2020. 4. 2020 accounts payable Turnover ratio. 5. Interest Coverage Ratio at the end of 2020. (Comment on this result, is it the higher the better or vice versa? Why?). Note: Show your calculations clearly. For the toolbar, press ALT+F10 (P) or ALT+FN+F10 (Mac). BIU S E vE vA v Paragraph Arial 10pt
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Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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