Using the information for SiteWorks, Inc., in SE 4 and SE 5, compute the current ratio, quick ratio, receivable turnover, average days' sales uncollected, inventory turnover, average days' inventory on hand, payables turnover, and average days' payable for 20x0 and 20x1. Inventories were $4,000 in 19x9, $5,000 in 20x0, and $7,000 in 20x1 . Accounts Receivable were $6,000 in 19x9, $8,000 in 20x0, and $10,000 in 20x1. Accounts Payable were $9,000 in 19x9, $10,000 in 20x0, and $12,000 in 20x1. The company had no marketable securities or prepaid assets. Comment on the results. (Round computa- tions to one decimal place.) LO1

Transcribed Image Text:

SiteWorks, Inc. Comparative Income Statements For the Years Ended December 31, 20x1 and 20x0 Net sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before income taxes Income taxes Net income Earnings per share 20x1 20x0 $180.000 112,000 $ 68,000 40,000 $ 28,000 7,000 $ 21,000 7,000 $ 14,000 $145,000 88,000 $ 57.000 30,000 $ 27,000 5,000 $ 22,000 8,000 $ 14,000 $ 1.40 $ 1.40