1. Compute for the company's profitability and operating efficiency's ratios for 2019 B.Operating Efficiencya. Asset Turnoverb. Fixed Asset Turnoverc. Inventory Turnoverd. Days in Inventorye. AR Turnoverf. Days in AR Problem No. 1Viance Queen CompanyStatement of Financial PositionAs of December 3120192018CashAccounts ReceivableInventoryPrepald RentDelivery VanTotal Assets110,00090,000129,00012,000550,000891,00087,40069,920218,5004,370493,810874,000Accounts PayableLoan PayableViance Queen, CapitalTotal Liabilities and Equity75,000400,000416,000891,00067,298393,300413,402874,000Viance Queen CompanyStatement of Comprehensive IncomeFor the Period Ended December 3120192018SalesCost of Goods SoldGross ProfitOperating ExpensesInterest ExpenseNet Income810,000348,300461,700234,90040,500186,300686,000301,750384,250205,80017,150161,300

Answered: Compute for the company's profitability…

Compute for the company's profitability and operating efficiency's ratios for 2019 B.Operating Efficiency a. Asset Turnover b. Fixed Asset Turnover c. Inventory Turnover

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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Question

1. Compute for the company's profitability and operating efficiency's ratios for 2019

B.Operating Efficiency

a. Asset Turnover

b. Fixed Asset Turnover

c. Inventory Turnover

d. Days in Inventory

e. AR Turnover

f. Days in AR

Problem No. 1
Viance Queen Company
Statement of Financial Position
As of December 31
2019
2018
Cash
Accounts Receivable
Inventory
Prepald Rent
Delivery Van
Total Assets
110,000
90,000
129,000
12,000
550,000
891,000
87,400
69,920
218,500
4,370
493,810
874,000
Accounts Payable
Loan Payable
Viance Queen, Capital
Total Liabilities and Equity
75,000
400,000
416,000
891,000
67,298
393,300
413,402
874,000
Viance Queen Company
Statement of Comprehensive Income
For the Period Ended December 31
2019
2018
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Interest Expense
Net Income
810,000
348,300
461,700
234,900
40,500
186,300
686,000
301,750
384,250
205,800
17,150
161,300

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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