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Financial Ratios Financial statements for Paulson's Pet Store are shown. Paulson's Pet Store Income Statement For Year Ended December 31, 20-- Revenue from sales: Sales
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Financial Ratios
Financial statements for Paulson's Pet Store are shown.
Paulson's Pet Store Income Statement For Year Ended December 31, 20-- Revenue from sales: Sales $326,040 Less: Sales returns and allowances 5,360 Net sales $320,680 Cost of goods sold: Merchandise inventory, January 1, 20-- $29,300 Estimated returns inventory, January 1, 20-- 900 $30,200 Purchases $162,630 Less: Purchases returns and allowances $4,080 Less: Purchases discounts 3,200 7,280 Net purchases $155,350 Add freight-in 1,600 Cost of goods purchased 156,950 Goods available for sale $187,150 Less: Merchandise inventory, December 31, 20-- $24,800 Less: Estimated returns inventory, December 31, 20-- 1,300 26,100 Cost of goods sold 161,050 Gross profit $159,630 Operating expenses: Wages expense $69,300 Advertising expense 1,100 Supplies expense 900 Phone expense 2,736 Utilities expense 2,864 Insurance expense 1,600 Depreciation expense-building 10,000 Depreciation expense-store equipment 1,800 Miscellaneous expense 600 Total operating expenses 90,900 Income from operations $68,730 Other expenses: Interest expense 650 Net income $68,080 Paulson's Pet Store Statement of Owners Equity For Year Ended December 31, 20-- B. Paulson, capital, January 1, 20-- $473,510 Add additional investments 30,000 Total investment $503,510 Net income for the year $68,080 Less: Withdrawals for the year 4,700 Increase in capital 63,380 B. Paulson, capital, December 31, 20-- $566,890 Paulson's Pet Store Balance Sheet December 31, 20-- Assets Current assets: Cash $23,450 Accounts receivable 59,350 Merchandise inventory 24,800 Estimated returns inventory 1,300 Supplies 2,300 Prepaid insurance 1,800 Total current assets $113,000 Property, plant, and equipment: Land $90,000 Building $350,000 Less: Accumulated depreciation 20,000 330,000 Store Equipment $120,000 Less: Accumulated depreciation 3,600 116,400 536,400 Total assets $649,400 Liabilities Current liabilities: Note payable $2,100 Accounts payable 59,570 Customer refunds payable 1,600 Wages payable 1,100 Sales tax payable 3,440 Total current liabilities $67,810 Long-term liabilities: Note payable $16,800 Less: Current portion 2,100 14,700 Total liabilities $82,510 Owner's Equity B. Paulson, capital 566,890 Total liabilities and owner's equity $649,400 All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $10,100.
Required:
Compute the financial ratios. Round answers to one decimal place.
Financial Ratios Current ratio fill in the blank 1 to 1 Quick ratio fill in the blank 2 to 1 Working capital $fill in the blank 3 Return on owner's equity fill in the blank 4% Accounts receivable turnover fill in the blank 5 Average number of days to collect receivables fill in the blank 6 days Inventory turnover fill in the blank 7 Average number of days to sell inventory fill in the blank 8 days
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