Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Expert Q&A Done AgBiz Corporation Balance Sheet at the End of YEAR 1: Current Assets: $174,000 Cash $ 17,000 Accounts Receivable $ 30,000 Inventory $127,000

image text in transcribed
image text in transcribed
image text in transcribed
Expert Q&A Done AgBiz Corporation Balance Sheet at the End of YEAR 1: Current Assets: $174,000 Cash $ 17,000 Accounts Receivable $ 30,000 Inventory $127,000 Other Assets: Land $250,000 Buildings $255,000 Equipment $235,000 Other Assets: $740,000 Total Assets: $1,020,000 Current Liabilities: $ 89,950 Accounts Payable $ 53,000 Notes Payable $ 36,950 Long-term Liabilities: $320,050 Notes Payable $220,050 Bonds Payable $100,000 Total Liabilities: $410,000 Owner's Equity or Total Net Worth: $610,000 Total Liabilities and Owner's Equity: $1,020,000 AgBiz Corporation Income or Profit/Loss Statement for YEAR 1: $1,465,000 $1,129,000 Revenues from Sales (Total Sales): Cost of Goods Sold: Gross Margin: $ 336,000 Less: Operating Expenses: Salaries/Wages Office Expenses Utilities & Fuel Promotion Total Operating Expenses: $ 140,000 $ 8,400 $ 44,600 $ 92,000 $285,000 Income Before Taxes (Pre-Tax Income): $ 51,000 ed Question 5 0 / 9.1 pts Calculate the inventory tumover ratio and convert it to days. fed Question 6 0 / 9.1 pts Calculate the accounts receivable turnover (assume 30% of sales are on credit) and covert it to days. Question 7 0 / 9.1 pts if the accounts receivable are due in 30 days, is this accounts receivable turnover good or bad? bad ed Question 8 0/9.1 pts Accounts payable turnover converted to days (assume 20% of your purchases are on credit. (use Cost of Goods Sold + Operating Expenses for numerator) Calculate the return on equity. (this answer is a percentage) 28.5% it 0 / 9.1 pts Question 10 Calculate the return on investment. (answer will be a percentage) 5.14 It 0 / 9.1 pts Question 11 Calculate the return on sales. (answer will be a percentage)

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

Retirement Income Recipes In R From Ruin Probabilities To Intelligent Drawdowns

Authors: Moshe Arye Milevsky

1st Edition

3030514331, 9783030514334

More Books

Students also viewed these Accounting questions

Question

What made you decide on this subfield of psychology?

Answered: 1 week ago

Question

Be able to schedule and conduct a performance appraisal interview

Answered: 1 week ago

Question

Know the two most common approaches to appraisal timing

Answered: 1 week ago