Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Case 4. Ratio Computations: ACCT 3140 Fraud Examination Cases Sp21 Charlie Corporation's comparative balance sheets are presented below. Charlie Corporation Balance Sheets December 31 2019
Case 4. Ratio Computations: ACCT 3140 Fraud Examination Cases Sp21 Charlie Corporation's comparative balance sheets are presented below. Charlie Corporation Balance Sheets December 31 2019 2020 Assets Cash $ 5,300 Accounts receivable 21,200 Inventory 9,000 Land 20,000 Buildings 70,000 Accumulated depreciation: buildings $ 3,700 23,400 7,000 26,000 70,000 Total $110,500 $120,100 Liabilities & stockholders' Equity Accounts payable Common stock Retained earnings Total Liabilities & $ 10.370 75,000 25.130 $ 31,100 69,000 20,000 $110,500 $120,100 Charlie's 2020 income statement included net sales of $120,000, cost of goods sold of $70,000, and net income of $14,000. Compute the following ratios for 2020. a. Current ratio b. Accounts receivable turnover c. Inventory turnover d. Profit margin e. Asset turnover f. Retum on assets g. Return on common stockholders' equity h. Debt to assets ratio =(v) (vi) (vii) = (viii) Note: There are 8 parts at 2.5 points per part
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