FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sub : Accounting
Pls answer very fast.I ll upvote correct answer. Thank You
Financial information for Sigma Company is presented below. Calculate the following ratios for Year 2.
(a) Inventory turnover.
(b)
(c) Return on total assets.
(d) Times interest earned.
(e) Total asset turnover.
Year 2 | Year 1 | |
---|---|---|
Assets: | ||
Cash | $ 18,000 | $ 22,000 |
Marketable securities | 25,000 | 0 |
Accounts receivable | 38,000 | 42,000 |
Inventory | 61,000 | 52,000 |
Prepaid insurance | 6,000 | 9,000 |
Long-term investments | 49,000 | 20,000 |
Plant assets, net | 218,000 | 225,000 |
Total assets | $ 415,000 | $ 370,000 |
Net income after interest expense and taxes | $ 62,250 |
---|---|
Sales (all on credit) | 305,000 |
Cost of goods sold | 123,000 |
Interest expense | 15,600 |
Income tax expense | 27,000 |
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