Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Cullumber Medical Comparative

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Cullumber Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $400,000 $417,600 Accounts receivable, net 1,056,000 776,400 Inventory 721,000 681,050 Other current assets 381,300 247,050 Total current assets 2.558.300 2,122,100 Property, plant, & equipment, net 8.710.235 8,439,930 Total assets $11,268,535 $10,562,030 Liabilities and Stockholders' Equity Current liabilities $3,208,000 $2,846,000 Long-term debt 3,702,700 3,892,650 Total liabilities 6,910,700 6,738,650 Preferred stock, $5 par value 59,000 59,000 Common stock, $0.25 par value 104,700 103,900 Retained earnings 4,194,135 3,660,480 Total stockholders' equity 4.357,835 3,823,380 Total liabilities and stockholders' equity $11,268,535 $10,562,030Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue [all on account) $10,17?,300 $9,613,900 Cost of goods sold 5,613,000 5,298,700 Gross prot 4,564,300 4,315,200 Operating expenses 2,840,250 2,634,200 Net operating income 1,924,050 1,681,000 Interest expense 300,400 308,600 Net income before taxes 1,423,650 1,392,400 Incometaxes [30%] 42?,095 411,?20 Netincome $996,555 $960,680 Dividends paid Preferred dividends 29,550 29,500 Common dividends 433,350 413,100 Total dividends paid 462,900 442,600 Netincome retained 533,655 518,080 Retained earnings. beginning ofvear 3,660,480 3,142,400 Retained earnings.end pfvear $4,194,135 $3,660,480 \f(e-f) Calculate the following liquidity ratios for 2020. (Round average collection period to O decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a. Average collection period days b. Inventory turnover times eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (g) Calculate average days to sell inventory for 2020. (Round answer to O decimal places, e.g. 25. Use 365 days for calculation.) Average days to sell inventory days eTextbook and Media Save for Later Attempts: 0 of 3 used Submit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory

Authors: William R. Scott, Patricia O'Brien

8th Edition

013416668X, 978-0134166681

More Books

Students also viewed these Accounting questions

Question

What happened to Computron's market value added (MVA)?

Answered: 1 week ago