Use the information below to answer the following questions. At the end of 2018, the Zedo Company
Question:
Use the information below to answer the following questions. At the end of 2018, the Zedo Company has $150,000 in accumulated depreciation and $120,000 in retained earnings.
2019 2020
Sales $700,000 $900,000
Notes Payable 45,000 75,000
Tax Rate 40% 40%
Gross Fixed Assets $1,200,000 $1,450,000
Total Current Liabilities 300,000 400,000
Interest Expense 60,000 80,000
Cash 20,000 30,000
Accounts Payable 160,000 140,000
Current Ratio 1.2 times 1.1 times
Total Liabilities 600,000 880,000
Net Income 33,600 54,000
Accounts Receivable 140,000 160,000
Dividends 14,000 18,000
Operating Expenses before 60% of sales 60% of sales
Depreciation/Amortization
Calculate for 2020:
- Inventory turnover
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- Accruals
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- Debt ratio
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- Common Stock
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- Net fixed assets turnover
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Calculate for 2020:
- Cash flow from operating activities
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- Cash flow from financing activities
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- Cash flow from investing activities
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- Net Operating Working Capital
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Expert Answer:
Calculations for 2020 Inventory Turnover Ratio 4 times Accruals 185000 Debt Ratio 063 Common Stock 330400 Net Fixed Asset Turnover Ratio 095 Cash flow ... View the full answer
