Use balance sheet and income statement in the first photo to answer questions CIRCLED IN RED in the second photo CashAccounts ReceivableInventoryLandBuildings and EquipmentTotal AssetsAccounts PayableNotes PayableBonds Payable (Long-Term)Common StockAdditional Paid-In CapitalRetained EarningsTotal Liabilities and Stockholders'EquitySalesCost of Merchandise SoldGross ProfitAdvertising ExpenseDepreciation ExpenseOffice Supplies ExpenseInterest ExpenseProvision for Income TaxesNet Income2001$ 771,7501,221,9381,543,5001,218,2811,768,594$6,524,063$2,572,500200,0001,286,250192,9381,125,4691,146,906$6,524,0632001$ 6,431,250(3,858,750)2,572,500(160,781)(257,250)(128,625)(257,250)(1,215,506)$ 553,0882002$ 900,3751,382,7191,672,1251,218,2811,707,813$6,881,313$2,701,125300,000803,906192,9381,125,4691,757,875$6,881,3132002$ 8,000,000(5,042,100)2,957,900(418,031)(328,251)(144,703)(192,938)(1,028,743)$ 845,234 Seventy-five percent of Rudolph's sales are credit sales. Assume a 365-day calendar year. OnDecember 1, Rudolph declared and paid $200,000 and $34,265 of common and preferred dividends,respectively.Required:• Calculate Rudolph's inventory turnover at December 31, 2002.• Calculate the number of days' sales in Rudolph's inventory at December 31, 2002.• Calculate Rudolph's account receivable turnover at December 31, 2002.• Calculate the number of days' sales in Rudolph's receivables at December 31, 2002.• Calculate Rudolph's times interest earned at December 31, 2002.• Calculate Rudolph's ratio of liabilities to stockholders' equity for 2002.• Calculate Rudolph's return on stockholders' equity for 2002.• Calculate Rudolph's current ratio for 2002.• Calculate Rudolph's quick ratio for 2002.

Introduction:- Ratio analysis used identify the business performance of the company. It is used to…

Answered: Calculate the number of days' sales in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use balance sheet and income statement in the first photo to answer questions CIRCLED IN RED in the second photo

Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Total Assets
Accounts Payable
Notes Payable
Bonds Payable (Long-Term)
Common Stock
Additional Paid-In Capital
Retained Earnings
Total Liabilities and Stockholders'
Equity
Sales
Cost of Merchandise Sold
Gross Profit
Advertising Expense
Depreciation Expense
Office Supplies Expense
Interest Expense
Provision for Income Taxes
Net Income
2001
$ 771,750
1,221,938
1,543,500
1,218,281
1,768,594
$
6,524,063
$2,572,500
200,000
1,286,250
192,938
1,125,469
1,146,906
$6,524,063
2001
$ 6,431,250
(3,858,750)
2,572,500
(160,781)
(257,250)
(128,625)
(257,250)
(1,215,506)
$ 553,088
2002
$ 900,375
1,382,719
1,672,125
1,218,281
1,707,813
$6,881,313
$2,701,125
300,000
803,906
192,938
1,125,469
1,757,875
$6,881,313
2002
$ 8,000,000
(5,042,100)
2,957,900
(418,031)
(328,251)
(144,703)
(192,938)
(1,028,743)
$ 845,234

Seventy-five percent of Rudolph's sales are credit sales. Assume a 365-day calendar year. On
December 1, Rudolph declared and paid $200,000 and $34,265 of common and preferred dividends,
respectively.
Required:
• Calculate Rudolph's inventory turnover at December 31, 2002.
• Calculate the number of days' sales in Rudolph's inventory at December 31, 2002.
• Calculate Rudolph's account receivable turnover at December 31, 2002.
• Calculate the number of days' sales in Rudolph's receivables at December 31, 2002.
• Calculate Rudolph's times interest earned at December 31, 2002.
• Calculate Rudolph's ratio of liabilities to stockholders' equity for 2002.
• Calculate Rudolph's return on stockholders' equity for 2002.
• Calculate Rudolph's current ratio for 2002.
• Calculate Rudolph's quick ratio for 2002.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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