From the income statement (Figure 22 8 ) and balance sheet (Figure 22 9 ) of Augustus Company, 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...

a Current assets Current liabilities Current ratio 128400 48800 263 b Current assets Merchandise Inv ...

From the income statement (Figure 22.8 ) and balance sheet (Figure 22.9 ) of Augustus Company, compute

Question:

From the income statement (Figure 22.8 ) and balance sheet (Figure 22.9 ) of Augustus Company, compute the following for 2020:

(a) Current ratio,

(b) Acid test ratio,

(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 common stockholders? equity. Assume all sales are on credit.

Comparative Income Statement for Augustus Co.

Comparative Balance Sheet for Augustus Co.

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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