Hendi Company has these comparative balance sheet data:

Additional information for 2012:
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 were $10,000.

Instructions Compute the following ratios at December 31, 2012.

(a) Current.

(e) Days in inventory.

(b) Receivables turnover. (f ) Cash debt coverage.

(c) Average collection period. (g) Current cash debt coverage.

(d) Inventory turnover. (h) Free cash flow.

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HENDI COMPANY Balance Sheets December 31 2012 Cash Receivables (net) Inventories Plant assets (net) Accounts payable Mortgage payable (15%) Common stock, $10 par Retained earnings itional information for 2012- $ 15,000 70,000 60,000 200,000 $345,000 $ 50,000 100,000 140,000 2011 $ 30,000 60,000 50,000 180,000 $320,000 $ 60,000 100,000 120,000 55,000 40,000 $345,000 $320,000