FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information comes from the accounting records of Carla Vista Ltd.:
Statement of Financial Position
Assets
Cash
Accounts receivable
Inventory
Capital assets (net)
Other assets
Liabilities and shareholders' equity
Accounts payable
Long-term debt
Liabilities and shareholders' equity
Accounts payable
Long-term debt
Common shares
Retained earnings
Statement of Income
Sales
Cost of goods sold
Other expenses
Income tax
Net income
2022
$32,500
100,200
163,000
651,000
350,000
$1.296,700
$149,000
301.000
$149,000
301,000
782,000
64,700
$1,296,700
$1,047,000
764,310
261,750
20,940
14,000
$6,940
2023
$32,000
119,000
193,000
671,000
312,000
$170,000
326,000
$170,000
326,000
782,000
$1,327,000 $1,549,000
49,000
869,760.0
277,840
2024
60,400
$36,000
15,100
169,000
$45,300
190,000
754,000
400,000
$189,000
515,000
$1,327,000 $1,549,000
$189,000
$1,208,000 $1,338,000
515,000
782,000
63,000
949,980
334,500
53,520
16,056
$37,464
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Transcribed Image Text:The following information comes from the accounting records of Carla Vista Ltd.: Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets Liabilities and shareholders' equity Accounts payable Long-term debt Liabilities and shareholders' equity Accounts payable Long-term debt Common shares Retained earnings Statement of Income Sales Cost of goods sold Other expenses Income tax Net income 2022 $32,500 100,200 163,000 651,000 350,000 $1.296,700 $149,000 301.000 $149,000 301,000 782,000 64,700 $1,296,700 $1,047,000 764,310 261,750 20,940 14,000 $6,940 2023 $32,000 119,000 193,000 671,000 312,000 $170,000 326,000 $170,000 326,000 782,000 $1,327,000 $1,549,000 49,000 869,760.0 277,840 2024 60,400 $36,000 15,100 169,000 $45,300 190,000 754,000 400,000 $189,000 515,000 $1,327,000 $1,549,000 $189,000 $1,208,000 $1,338,000 515,000 782,000 63,000 949,980 334,500 53,520 16,056 $37,464
O
Based on the above information, analyze the changes in the company's profitability and liquidity, in addition to the management of
accounts receivable and inventory from 2022 to 2024. (Round answers to 1 decimal place, e.g. 13.5% or 13.5.)
Sales
Cost of goods sold
Gross margin
Other expenses
Income taxes
Net income
Question 5 of 5
Current ratio
Quick ratio
A/R turnover
<
Average collection period
Inventory turnover
Days to sell inventory
2022
20
%
%
%
2022
%
%
%
2022
:1
times
days
times
days
2023
%
%
%
%
%
%
2023
2023
:1
:1
times
days
times
days
2024
%
%
%
%
%
%
2024
2024
expand button
Transcribed Image Text:O Based on the above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable and inventory from 2022 to 2024. (Round answers to 1 decimal place, e.g. 13.5% or 13.5.) Sales Cost of goods sold Gross margin Other expenses Income taxes Net income Question 5 of 5 Current ratio Quick ratio A/R turnover < Average collection period Inventory turnover Days to sell inventory 2022 20 % % % 2022 % % % 2022 :1 times days times days 2023 % % % % % % 2023 2023 :1 :1 times days times days 2024 % % % % % % 2024 2024
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