Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company reported the following information in its financial statements: Cash 225,000 Insurance or negotiable securities 59,600 Accounts receivable (net) 78,650 Inventory 148,500 Accounts payable

A company reported the following information in its financial statements:

Cash225,000
Insurance or negotiable securities59,600
Accounts receivable (net)78,650
Inventory148,500
Accounts payable203,635
Sales1,675,000
Net fixed assets1,345,800
Operating profit536,000
Cost of goods sold753,750
Total assets1,857,550
Total liabilities1,056,360
Net income140,357
Interest expense88,300
Capital801,190

Calculate the following financial ratios:

  1. current ratio
  2. settlement of accounts receivable
  3. fixed asset movement
  4. operating profit investment performance
  5. return on total assets
  6. quick reason
  7. average collection period
  8. debt ratio
  9. equity performance
  10. inventory liquidation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Lets calculate the requested financial ratios using the provided financial information 1 Current Ratio The current ratio is a liquidity ratio that measures a companys ability to pay shortterm obligati... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A User Perspective

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

6th Canadian Edition

470676604, 978-0470676608

More Books

Students also viewed these Finance questions

Question

What are the four temperament types included in Pavlovs system?

Answered: 1 week ago