Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial statements for Askew Industries for 2013 are shown below: 2013 Income Statement ($ in 000s) Sales $ 8,800 Cost of goods sold (6,250 )

Financial statements for Askew Industries for 2013 are shown below:

2013 Income Statement
($ in 000s)
Sales $ 8,800
Cost of goods sold (6,250 )
Gross profit 2,550
Operating expenses (1,950 )
Interest expense (180 )
Tax expense (168 )
Net income $ 252

Comparative Balance Sheets
Dec. 31
2013 2012
Assets
Cash $ 580 $ 480
Accounts receivable 580 380
Inventory 780 580
Property, plant, and equipment (net) 1,800 1,900
$ 3,740 $ 3,340
Liabilities and Shareholders' Equity
Current liabilities $ 980 $ 730
Bonds payable 1,300 1,300
Paid-in capital 580 580
Retained earnings 880 730
$ 3,740 $ 3,340

Calculate the following ratios for 2013. (Do not round intermediate calculations. Consider 365 days a year. The expected format for rounding is presented in each row of the table.)

1) inventory turnover ratio ( #.# ) ___ times

2) average days in inventory ( #.## )______days

3) receivable turnover ratio (#.# ) _______times

4) average collection period ( #.## ) _________days

5) asset turnover ratio ( #.##) __________times

6) profit margin on sales ( #.##)__________

7) retuen on assets ( #.## ) _________

8) return on shareholders equity ( #.# ) ________

9) equity multiplier ( #.## ) ________ times

10) return on shareholders equity ( using the dupont framework) ( #.#)_________

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

Tax Accounting

Authors: Greg Shields

1st Edition

163716128X, 978-1637161289

More Books

Students also viewed these Accounting questions

Question

Select Disk Management. LO.1

Answered: 1 week ago

Question

Given: f(n) = nf(n-1) for n>1 f(1)=1 What is f(5)? 120 24 15 121

Answered: 1 week ago

Question

What kinds of communication help sustain long-distance romances?

Answered: 1 week ago