From the income statement and balance sheet of Andrews Company (Figures 22.14 and 22.15), compute the following

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From the income statement and balance sheet of Andrews Company (Figures 22.14 and 22.15), compute the following for 2020:

(a) Current ratio,

(b) Acid test ratio,

(c) Accounts receivable turnover,

(d) Average collection period,

(e) Inventory turnover,

(f) Asset turnover,

(g) Debt to total assets,

(h) Debt to stockholders? equity,

(i) Times interest earned,

(j) Gross profit rate,

(k) Return on sales,

(l) Return on total assets,

(m) Return on stockholders? equity.

Assume all sales are on credit.

Comparative Income Statement for Andrews Co.

image

Comparative Balance Sheet for Andrews Co.

image

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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