Crane Company has these comparative balance sheet data: CRANE COMPANY Balance Sheets December 31 2022 2021 Cash $ 27,105 $ 54,210 Accounts receivable (net) 126,490 108,420 Inventory 108,420 90,350 Plant assets (net) 361,400 325,260 $623,415 $578,240 Accounts payable $ 90,350 $ 108,420 Mortgage payable (15%) 180,700 180,700 Common stock, $10 par 252,980 216,840 Retained earnings 99,385 72,280 $623,415 $578,240 Additional information for 2022: 1. Net income was $27,900. 2. Sales on account were $382,300. Sales returns and allowances amounted to $29,000. 3. Cost of goods sold was $207,500. 4. Net cash provided by operating activities was $57,000. 5. Capital expenditures were $28,900, and cash dividends were $17,900. Compute the following ratios at December 31, 2022. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.) (a) Current ratio. enter current ratio rounded to 2 decimal places :1 (b) Accounts receivable turnover. enter accounts receivable turnover in times rounded to 1 decimal place times (c) Average collection period. enter average collection period in days rounded to 1 decimal place days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Crane Company has these comparative balance sheet data:

CRANE COMPANY Balance Sheets December 31
	2022	2021
Cash	$ 27,105	$ 54,210
Accounts receivable (net)	126,490	108,420
Inventory	108,420	90,350
Plant assets (net)	361,400	325,260
	$623,415	$578,240
Accounts payable	$ 90,350	$ 108,420
Mortgage payable (15%)	180,700	180,700
Common stock, $10 par	252,980	216,840
Retained earnings	99,385	72,280
	$623,415	$578,240

Additional information for 2022:

1.		Net income was $27,900.
2.		Sales on account were $382,300. Sales returns and allowances amounted to $29,000.
3.		Cost of goods sold was $207,500.
4.		Net cash provided by operating activities was $57,000.
5.		Capital expenditures were $28,900, and cash dividends were $17,900.

Compute the following ratios at December 31, 2022. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.)

(a)	Current ratio.	enter current ratio rounded to 2 decimal places	:1
(b)	Accounts receivable turnover.	enter accounts receivable turnover in times rounded to 1 decimal place	times
(c)	Average collection period.	enter average collection period in days rounded to 1 decimal place	days
(d)	Inventory turnover.	enter inventory turnover in times rounded to 2 decimal places	times
(e)	Days in inventory.	enter days in inventory rounded to 1 decimal place	days
(f)	Free cash flow.	$enter free cash flow in dollars rounded to 1 decimal place

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions