Exercise 4-26 (Algo) Evaluating efficiency of asset management (L04-10) 690 The 2021 income statement of Anderson Medical Supply Company reported net sales of $11 million, cost of goods sold of $6.7 million and net income of $895,000. The following table shows the company's comparative balance sheets for 2021 and 2020: ($ in thousands) 2021 2020 Assets Cash $ 680 $ 760 Accounts receivable 1,080 Inventory 1,350 1,260 Property, plant, and equipment (net) 4,300 4,020 Total assets $ 7,410 $6,730 Liabilities and streholders' equity Current liabilities $1,340 $1,210 Bonds payable 2,150 2,150 Common stock 2,900 2,900 Retained earnings 1,020 470 Total liabilities and shareholders' equity $ 7,410 $6,730 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio times times days timos Exercise 4-27 (Algo) Profitability ratios (L04-10) The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020 ($ in thousands 2021 2020 $5,300 198 $4,300 126 Income statement information Net sales Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $ 810 1, 190 $ 2,000 $ 580 760 500 160 $ 760 840 $1,600 $ 230 760 500 110 $1,600 $2,000 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a. Profit margin on sales 1b. Return on assets 10. Return on equity 2. Dividends pald % % % Cemptex Corporation prepares its statement of cash flows using the Indirect method to report operating activities. Net income for the 2021 fiscal year was $724,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and lobilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $42,000 11,200 10,500 12,000 18,000 Required: Prepare the operating activities section of the 2021 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities $ 0 Net cash flows from operating activities
