Lendell Company has these comparative balance sheet data: Additional information for 2025: 1. Net income was ($
Question:
Lendell Company has these comparative balance sheet data:
Additional information for 2025:
1. Net income was \(\$ 25,000\).
2. Sales on account were \(\$ 375,000\). Sales returns and allowances amounted to \(\$ 25,000\).
3. Cost of goods sold was \(\$ 198,000\).
4. Net cash provided by operating activities was \(\$ 48,000\).
5. Capital expenditures were \(\$ 25,000\), and cash dividends paid were \(\$ 10,000\).
6. The bonds payable are due in 2038 .
Instructions
Compute the following ratios at December 31, 2025.
a. Current ratio.
b. Accounts receivable turnover.
c. Average collection period.
d. Inventory turnover.
e. Days in inventory.
f. Free cash flow.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell