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Financial statements for Askew Industries for 2016 are shown below (in $000s): 2016 Income Statement Sales $ 10,000 Cost of goods sold (6,550 ) Gross
Financial statements for Askew Industries for 2016 are shown below (in $000s): |
2016 Income Statement | |||
Sales | $ | 10,000 | |
Cost of goods sold | (6,550 | ) | |
Gross profit | 3,450 | ||
Operating expenses | (2,250 | ) | |
Interest expense | (300 | ) | |
Tax expense | (360 | ) | |
Net income | $ | 540 | |
Comparative Balance Sheets | ||||||
Dec. 31 | ||||||
2016 | 2015 | |||||
Assets | ||||||
Cash | $ | 700 | $ | 600 | ||
Accounts receivable | 700 | 500 | ||||
Inventory | 900 | 700 | ||||
Property, plant, and equipment (net) | 3,000 | 3,100 | ||||
$ | 5,300 | $ | 4,900 | |||
Liabilities and Shareholders' Equity | ||||||
Current liabilities | $ | 1,700 | $ | 1,450 | ||
Bonds payable | 1,900 | 1,900 | ||||
Paid-in capital | 700 | 700 | ||||
Retained earnings | 1,000 | 850 | ||||
$ | 5,300 | $ | 4,900 | |||
Required: Calculate the following ratios for 2016. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) days days 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio 4. Average collection period 5. Asset turnover ratio 6. Profit margin on sales 7. Return on assets 8. Return on shareholders' equity 9. Equity multiplier 10. Return on shareholders' equity (using the DuPont framework) times
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