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Loose Leaf for Foundations of Financial Management Format: Loose-leaf
- 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.arrow_forwardFINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 596597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventoryarrow_forwardJuroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.arrow_forward
- Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.arrow_forwardBased upon the information given below, calculate the following:  Current ratio                             Acid test                                 Accounts receivable turnover ratio Cash ratio                                 Inventory turnover                               EPS                                  Total asset turnover Debt ratio                                 Debt-to-equity ratio Times interest earned               ROI Net profit margin                     ROE Market price/Book value             P/E Average Collection Period  BALANCE SHEET             ASSETS                                                        LIABILITIES & STOCKHOLDERS EQUITY  Cash                                 $ 1,500                              Accounts payable                 $12,500 Marketable securities           2,500                              Notes payable                        12,500 Accounts receivable           15,000                              Total…arrow_forward1. Compute the following ratios for the comparative periods (2018 and 2019). The company used 365 days in its computation for some of the ratios. Show your solution. a. Working Capital b. Current Ratio c. Acid Test Ratio d. Accounts Receivable Turnover Ratio e. Average Collection Period f. Inventory Turnover Ratio g. Average Days in Inventory h. Number of days in Operating Cycle i. Debt to Total Assets Ratio j. Debt to Equity Ratio k. Times Interest Earned Ratio l. Gross Profit Ratio m. Profit Margin Ratio n. Return on Assets o. Return on Equity p. Assets Turnover Ratioarrow_forward
- The following ratios have been computed for Pina Colada Company for 2010. Profit margin 20% (net profit/revenue) Times interest earned 15 times (income before interest expense and income taxes/interest expense) Receivables turnover 5 times (net credit sales/average net receivables) Acid-test ratio 1.60 : 1 (marketable net cash + securities + receivables/current liabilities) Current ratio 3 : 1 (current assets/current liabilities) Debt to total assets ratio 26% (total debts/total assets)  Pina Colada Company’s 2010 financial statements with missing information follow: PINA COLADA COMPANY Comparative Balance Sheet December 31, Assets                                                              2010         2009 Cash                                                              P 25,000             P 35,000 Short-term Investments                                   15,000              15,000 Accounts receivable (net)                                 ? (6)…arrow_forwardheridan Company had net credit sales during the year of $1047750 and cost of goods sold of $484000. The balance in accounts receivable at the beginning of the year was $110400 and at the end of the year was $143600. What was the accounts receivable turnover?arrow_forwardCompute the following ratios for the most recent two years, show all values in the computations: 1.Current ratio 2.Accounts receivable turnover 3.Debt ratio(TotalLiabilities/Total Assets, as a percentage) 4.Debt-to-equity ratio Based on the results above, what conclusions can you make about the liquidity and solvency of the company?arrow_forward
- The financial statements of Bolero Manufacturing Inc. report net credit sales of $900,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of the year, respectively. What is the receivables turnover ratio for Bolero? O 15.0 times O7.5 times 22.5 times O 11.25 timesarrow_forwardAccording to the information available in Income and Financial position statements (Image), calculate the following ratios for the business Competitors Average: - Net profit margin 31%- Gross profit margin 54%- Current ratio 2.87x- Acid test ratio 1.35x- Accounts receivable collection period 50 days- Accounts payable payment period 72 daysarrow_forwardThe financial statement of Minnesota Mining and Manufacturing Company ( 3M ), report net sales of $20.0 billion. Accounts receivable (net) are $2.7 billion at the beginning of the year and $2.8 billion at the end of the year. Compute 3M's account receivable turnover. Compute 3M's average collection period for accounts receivable in days.arrow_forward
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