Based on the financial statements for Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown below, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,888. Assume 365 days per year.
If required, round your answers to two decimal places. For return on owner's equity, enter as a percent but do not include percent sign.
Round average number of days answers to one decimal place.
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| Return on owner's equity: | | | | | |
| Accounts receivable turnover: | | | | | |
| Average number of days required to collect receivables | | | | | |
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| Average number of days required to sell inventory | | | | | |
Working capital
Current ratio
Quick ratio
Return on owner's equity
Accounts receivable turnover and average number of days required to collect receivables
Inventory turnover and average number of days required to sell inventory
| Jackson Enterprises Income Statement For Year Ended December 31, 20 -- |
| Revenue from sales: | | | | |
| Sales | | | $183,540 | |
| Less sales returns and allowances | | | 2,126 | |
| Net sales | | | | $181,414 |
| Cost of goods sold: | | | | |
| Merchandise inventory, January 1, 20-- | | | $31,490 | |
| Purchases | | $92,760 | | |
| Less: Purchases returns and allowances | $1,816 | | | |
| Purchases discounts | 1,830 | 3,646 | | |
| Net purchases | | $89,114 | | |
| Add freight-in | | 907 | | |
| Cost of goods purchased | | | 90,021 | |
| Goods available for sale | | | $121,511 | |
| Less merchandise inventory, December 31, 20-- | | | 28,113 | |
| Cost of goods sold | | | | 93,398 |
| Gross profit | | | | $88,016 |
| Operating expenses: | | | | |
| Wages expense | | | $38,328 | |
| Advertising expense | | | 1,130 | |
| Supplies expense | | | 398 | |
| Telephone expense | | | 2,266 | |
| Utilities expense | | | 10,596 | |
| Insurance expense | | | 906 | |
| Depreciation expense-building | | | 3,538 | |
| Depreciation expense-equipment | | | 3,948 | |
| Miscellaneous expense | | | 526 | |
| Total operating expenses | | | | 61,636 |
| Income from operations | | | | $26,380 |
| Other revenues: | | | | |
| Interest revenue | | | $1,864 | |
| Other expenses: | | | | |
| Interest expense | | | 722 | 1,142 |
| Net income | | | | $27,522 |
| Jackson Enterprises Statement of Owner's Equity For Year Ended December 31, 20 -- |
| J. B. Gray, capital, January 1, 20-- | | $87,831 |
| Net income for the year | $27,522 | |
| Less withdrawals for the year | 11,570 | |
| Increase in capital | | 15,952 |
| J. B. Gray, capital, December 31, 20-- | | 103,783 |
| Jackson Enterprises Balance Sheet December 31, 20 -- |
| Assets | | | |
| Current assets: | | | |
| Cash | | $20,846 | |
| Accounts receivable | | 18,836 | |
| Merchandise inventory | | 28,113 | |
| Supplies | | 1,354 | |
| Prepaid insurance | | 870 | |
| Total current assets | | | $70,019 |
| Property, plant, and equipment: | | | |
| Building | $89,240 | | |
| Less accumulated depreciation-building | 27,020 | $62,220 | |
| Equipment | $32,860 | | |
| Less accumulated depreciation-equipment | 7,992 | 24,868 | |
| Total property, plant, and equipment | | | 87,088 |
| Total assets | | | $157,107 |
| Liabilities | | | |
| Current liabilities: | | | |
| Accounts payable | $12,900 | | |
| Wages payable | 410 | | |
| Sales tax payable | 1,234 | | |
| Mortgage payable (current portion) | 710 | | |
| Total current liabilities | | $15,254 | |
| Long-term liabilities: | | | |
| Mortgage payable | $38,780 | | |
| Less current portion | 710 | 38,070 | |
| Total liabilities | | | $53,324 |
| Owner's Equity | | | |
| J. B. Gray, capital | | | 103,783 |
| Total liabilities and owner's equity | | | $157,107 |
