Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Current Attempt in Progress Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 2019 Cash $ 16,000 $ 29,000
Current Attempt in Progress
Lendell Company has these comparative balance sheet data:
Lendell Company Balance Sheets December 31 | ||||||
---|---|---|---|---|---|---|
2020 | 2019 | |||||
Cash | $ 16,000 | $ 29,000 | ||||
Accounts receivable (net) | 71,000 | 59,000 | ||||
Inventory | 59,000 | 49,000 | ||||
Plant assets (net) | 205,000 | 182,000 | ||||
$351,000 | $319,000 | |||||
Accounts payable | $50,000 | $59,300 | ||||
Mortgage payable (15%) | 106,500 | 106,500 | ||||
Common stock, $10 par | 141,500 | 124,500 | ||||
Retained earnings | 53,000 | 28,700 | ||||
$351,000 | $319,000 |
Additional information for 2020:
1. | Net income was $24,000. | |
2. | Sales on account were $404,100. Sales returns and allowances amounted to $20,600. | |
3. | Cost of goods sold was $199,800. | |
4. | Net cash provided by operating activities was $45,100. | |
5. | Capital expenditures were $24,800, and cash dividends were $9,600. |
Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.)
(a) | Current ratio | enter the Current ratio rounded to 2 decimal places | :1 | ||
---|---|---|---|---|---|
(b) | Accounts receivable turnover | enter the Accounts receivable turnover rounded to 1 decimal place | times | ||
(c) | Average collection period | enter the Average collection period rounded to 1 decimal place | days | ||
(d) | Inventory turnover | enter the Inventory turnover rounded to 1 decimal place | times | ||
(e) | Days in inventory | enter the Days in inventory rounded to 1 decimal place | days | ||
(f) | Free cash flow | $enter a dollar amount |
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