Question
Carla Companys condensed financial statements provide the following information. CARLA COMPANY BALANCE SHEET Dec. 31, 2020 Dec. 31, 2019 Cash $ 7,000 $ 23,000 Accounts
Carla Companys condensed financial statements provide the following information.
CARLA COMPANY BALANCE SHEET | ||||||
---|---|---|---|---|---|---|
Dec. 31, 2020 | Dec. 31, 2019 | |||||
Cash | $ 7,000 | $ 23,000 | ||||
Accounts receivable (net) | 152,000 | 111,000 | ||||
Short-term investments | 52,000 | 31,000 | ||||
Inventories | 301,000 | 266,000 | ||||
Prepaid expenses | 13,000 | 8,000 | ||||
Total current assets | $ 525,000 | $ 439,000 | ||||
Property, plant, and equipment (net) | 457,000 | 423,000 | ||||
Total assets | $982,000 | $862,000 | ||||
Current liabilities | 277,000 | 199,000 | ||||
Bonds payable | 250,000 | 259,000 | ||||
Common stockholders equity | 455,000 | 404,000 | ||||
Total liabilities and stockholders equity | $982,000 | $862,000 |
INCOME STATEMENT FOR THE YEAR ENDED 2020 | ||
---|---|---|
Net sales | $2,604,000 | |
Cost of goods sold | (1,658,000) | |
Gross profit | 946,000 | |
Selling and administrative expenses | (587,000) | |
Interest expense | (23,000) | |
Net income | $ 336,000 |
Determine the following for 2020. (Round accounts receivable turnover and inventory turnover to 1 decimal place, e.g. 15.2. Round current ratio, acid-test ratio, rate of return on assets and profit margin on sales to 2 decimal places, e.g. 1.59 or 45.87%.)
(1) | Current ratio at December 31 | times | |||
---|---|---|---|---|---|
(2) | Acid-test ratio at December 31 | times | |||
(3) | Accounts receivable turnover | times | |||
(4) | Inventory turnover | times | |||
(5) | Rate of return on assets | % | |||
(6) | Profit margin on sales | % |
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