Question
Cornerstone Exercise 12-48 (Algorithmic) Horizontal and Vertical Analysis Selected data from the financial statements of Jones Hardware Company follows. 2019 2018 Accounts receivable $52,700 $38,000
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Cornerstone Exercise 12-48 (Algorithmic) Horizontal and Vertical Analysis
Selected data from the financial statements of Jones Hardware Company follows.
2019 2018 Accounts receivable $52,700 $38,000 Merchandise inventory 13,400 16,000 Total assets 450,000 380,000 Net sales 380,000 270,000 Cost of goods sold 182,000 210,000 Required:
1. Calculate by how much accounts receivable, merchandise inventory, total assets, net sales, and cost of goods sold increased or decreased in dollar terms from 2018 to 2019.
Accounts receivable $ - increase
- decrease
Merchandise inventory $ - increase
- decrease
Total assets $ - increase
- decrease
Net sales $ - increase
- decrease
Cost of goods sold $ - increase
- decrease
2. Indicate what happened from 2018 to 2019 to accounts receivable and merchandise inventory as a percentage of total assets. Round to the nearest whole percent.
Accounts receivable - decreased
- increased
Merchandise inventory - decreased
- increased
Indicate what happened from 2018 to 2019 to cost of goods sold as a percentage of net sales (rounded to the nearest whole percent).
Cost of goods sold
- decreased
- increased
-
Cornerstone Exercise 12-52 (Algorithmic) Asset Efficiency Ratios
Selected financial statement numbers for Rutherford Company follow.
Net sales $272,800 Cost of goods sold 179,000 Average accounts receivable 20,730 Average inventory 4,145 Average property, plant, and equipment 75,705 Average total assets 126,127 Required:
Round your answers to two decimal places.
1. Using this information, calculate Rutherford's receivable turnover ratio.
2. Using this information, calculate Rutherford's asset turnover ratio and also convert the ratio into days (rounded to the nearest whole day).
Asset turnover ratio Conversion into days days
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