Lendell Company has these comparative balance sheet data:

LENDELL COMPANY Balance Sheets LO15 December 31 2017 2016 Cash $ 15,000 $ 30,000 Accounts receivable (net) 70,000 60,000 Inventory 60,000 50,000 Plant assets (net) 200,000 180,000

$345,000 $320,000 Accounts payable $ 50,000 $ 60,000 Mortgage payable (15%) 100,000 100,000 Common stock, $10 par 140,000 120,000 Retained earnings 55,000 40,000

$345,000 $320,000 Additional information for 2017:

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, 2017.

(a) Current ratio.

(b) Accounts receivable turnover.

(c) Average collection period.

(d) Inventory turnover.

(e) Days in inventory.

(f) Free cash fl ow.