Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Balance Sheets December 31, 2021 and 2020 2021 2020 $ $ 116,800 78,000 95,000 4,000 120,000 92,000 80,000 2,000 480,000 790,000 (428,000) $1,135,800 480,000 670,000
Balance Sheets December 31, 2021 and 2020 2021 2020 $ $ 116,800 78,000 95,000 4,000 120,000 92,000 80,000 2,000 480,000 790,000 (428,000) $1,135,800 480,000 670,000 (268,000) $1,176,000 Assets Current assets Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment . Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 99,000 6,000 8,000 85,000 12,000 5,000 100,000 200,000 700,000 222,800 $1,135,800 700,000 174,000 $1,176,000 Additional information for 2021: 1. Net income is $48,800. 2. Sales on account are $1,521,500. 3. Cost of goods sold is $1,163,750. Required: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.) times times Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio C. Current ratio d. Acid-test ratio e. Debt to equity ratio TTTT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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