Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
5-35. From the values of the different ratios given, calculate the missing balance sheet and income statement items of National Sponge Company. Average Collection Period
5-35. From the values of the different ratios given, calculate the missing balance sheet and income statement items of National Sponge Company. Average Collection Period 48.67 days Inventory Turnover 9x Debt to Asset Ratio .4 or 40% Current Ratio 1.6250 Total Asset Turnover 1.5 Fixed Asset Turnover 2.647 Return on Equity 0.242 or 24.2% Return on Assets 0.145 or 14.5% Operating Profit Margin 13.33% Gross Profit Margin 48.89% 2012 National Sponge Company Income Statement for 2018 (000 dollars) Sales $45,000 Cost of Goods Sold Gross Profit Selling and Administrative Expenses Depreciation Expense 3,000 Operating Income (EBIT) Interest Expense Earnings before Taxes (EBT) Income Taxes (T = 25%) 1,450 Net Income (NI) 20 More up bna DED National Sponge Company Balance Sheet as of End 2018 Assets: Cash Accounts Receivable (gross) Inventory Plant and Equipment (net) Land 0001 1,000 Chapter 5 Analysis
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started