Use the following information to complete the Financial Statements a. Average collection period of 55 days b. Total equity is $2,250,000 C. Return on Equity of 12% d. Total assets turnover of 1.248 е. Gross profit margin of 40% f. Curren ratio of 3.5 g. Long term liabilities are $1,514,422.5 h. Initial inventory was $1,000,000 and the inventory turnover is 3 times i. The debt ratio (liabilities to assets) is 48% Income Statement Sales Cost of goods sold Gross profit Expenses and taxes Net profit

Use the following information to complete the Financial Statements a. Average collection period of 55 days b. Total equity is $2,250,000 C. Return on Equity of 12% d. Total assets turnover of 1.248 е. Gross profit margin of 40% f. Curren ratio of 3.5 g. Long term liabilities are $1,514,422.5 h. Initial inventory was $1,000,000 and the inventory turnover is 3 times i. The debt ratio (liabilities to assets) is 48% Income Statement Sales Cost of goods sold Gross profit Expenses and taxes Net profit

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Determine amounts a, b, and c. Additional information follows: ∙ Return on total assets is 16% (average total assets is $68,750). ∙ Inventory turnover is 5 (average inventory is $6,000). ∙ Accounts receivable turnover is 8 (average accounts receivable is $6,250).
7. Sales for the year amount to P3,000,000, Accounts receivable is P360,000. What is the average collection period assuming annual data is used? quarterly data is used? 8. Beginning inventory is P40,000, ending inventory is P28,000. Cost of goods sold is double the ending inventory and accounts payable is P44,000,. What is the accounts payable turnover? 9. The quick ratio is 1.75 while the current ratio is 2.5. the current liabilities amount to P525,000. Cost of goods sold is P955,000. What is the inventory turnover? of inventory? what is the average age 10. Ending inventory is P33,000 while accounts payable is P5,000. Purchases were half the ending inventory. What is the accounts payable turnover? inventory? What is the average age of
Analysis of the statement of financial position of Charon for the year ended 20X9 reveals the following relationships: Current ratio 2:1 Sales: current assets 5:1 Acid test ratio 1.5:1 If the sales for the year were $30 million, what is the value of inventory that will appear in the statement of financial position? A $1.5m B $10.5m C $3.0m D $4.5m
Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 73.0 daysa Inventory turnover ratio: 4.25x Fixed assets turnover: 3.0x Current ratio: 2.0x Gross profit margin on sales: (Sales Cost of goods sold)/Sales aCalculation is based on a 365-day year. = 15% Do not round intermediate calculations. Round your answers to the nearest dollar. Cash Accounts receivable Inventories Fixed assets Balance Sheet Current liabilities Long-term debt Common stock Retained earnings Total assets $300,000 Total liabilities and equity Sales $ Cost of goods sold $ EA $ A 75,000 75,000
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UST Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and inventory. Given is the following information: Credit sales 75% of total sales Quick ratio 1.25:1 Inventory turnover 5x Average collection period 42 days Working capital P1,120,000 Working days 360 Current ratio 2:1 What is the amount of inventory?
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Given the following: Current Assets $ 18,000 Accounts Receivable $ 3,000 Current Liabilities $ 16,000 Inventory $ 2,000 Net Sales $ 41,000 Total Assets $ 29,000 Net Income $ 6,000 Find the following (round to the nearest hundredth if needed): Current Ratio? Acid test quick ratio? Average days collection ? Asset turover ? Profit Margin on net sales?
Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $5,013,000. Dogwood had the following balances: January 1 December 31 Accounts receivable $725,000 $775,000 Inventory 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory.$ 2. Calculate the inventory turnover ratio.times 3. Calculate the inventory turnover in days.days 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly? Based on the ratios Nikkola is performing very well. Based on the ratios Nikkola is not performing as expected. Without more detailed information on Nikkola's and its industry, it is difficult to classify these results as outstanding, poor, or somewhere in between Check My Work Previous Next
i. Use the information available in Income and Financial position statementin Part A and calculate the following ratios for DavidCompetitors Average• Net profit margin 28%• Gross profit margin 65%• Current ratio 2.10x• Acid test ratio 1.50x• Accounts receivable collection period 47 days• Accounts payable payment period 65 days Net Profit Margin = Net Income/ Sales = 350/2300 = 15.22% Gross Profit = Sales Revenue + Ending Inventory - Purchases less purchase returns = 2300 + 250 - 1100 = 1450 Gross Profit Margin = Gross Profit/ Sales = 1450/2300 = 63.04% Current Ratio = Current Assets/ Current Liabilities Current Assets = Cash + Bank + Accounts Receivable + Inventory = 4050 + 17100 + 400 + 250 = 21800 Current Liabilities = Accounts Payable = 700 Current Ratio = 21800/700 = 31.14:1 please answer this QUESTION :ii. Assuming David’s competitor’s ratio averages are as stated above:Analyse his performance with reference to each of the ratios calculatedin comparison to those of her…
Viper Construction’s days sales outstanding is 50 days (on a 365-day basis). The company’s accounts receivable equal $100 million and its balance sheet shows inventory equal to $125 million. What is the Viper Corporation's Inventory turnover ratio? A. approximately Php 4B. approximately 5 daysC. approximately 6 times in a yearD. approximately 5 times in a yearE. approximately Php 6