Net sales (all credit) .............................................. $450,000 Liabilities to total assets ........................................ 1 to 2 Income taxes........................................................ $1,000
Question:
Net sales (all credit) .............................................. $450,000
Liabilities to total assets ........................................ 1 to 2
Income taxes........................................................ $1,000
Net income .......................................................... $36,000
Average collection period ..................................... 60.83 days
PPE asset turnover ................................................ 3 times
Merchandise turnover .......................................... 5 times
Expenses (including taxes of 40%).......................$114,000
Current ratio........................................................ 3 to 1
Total asset turnover .............................................. 1.5 times
Retained earnings, Jan. 1, 2014 ............................ $10,000
Required Complete the balance sheet for Hope Corporation. Round amounts to the nearest$100.
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Step by Step Answer:
HOPE CORPORATION Balance Sheet December 31 2014 Assets Liabilities and Equity Cash 15000 Current lia...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
