Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial statements for Askew Industries for 2018 are shown below (in $000s): 2018 Income Statement Sales $ 9,500 Cost of goods sold (6,425 ) Gross
Financial statements for Askew Industries for 2018 are shown below (in $000s):
2018 Income Statement | |||
Sales | $ | 9,500 | |
Cost of goods sold | (6,425 | ) | |
Gross profit | 3,075 | ||
Operating expenses | (2,125 | ) | |
Interest expense | (250 | ) | |
Tax expense | (280 | ) | |
Net income | $ | 420 | |
Comparative Balance Sheets | |||||||
Dec. 31 | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Cash | $ | 650 | $ | 550 | |||
Accounts receivable | 650 | 450 | |||||
Inventory | 850 | 650 | |||||
Property, plant, and equipment (net) | 2,500 | 2,600 | |||||
$ | 4,650 | $ | 4,250 | ||||
Liabilities and Shareholders Equity | |||||||
Current liabilities | $ | 1,400 | $ | 1,150 | |||
Bonds payable | 1,650 | 1,650 | |||||
Paid-in capital | 650 | 650 | |||||
Retained earnings | 950 | 800 | |||||
$ | 4,650 | $ | 4,250 | ||||
Required: Calculate the following ratios for 2018. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.)
1. | Inventory turnover ratio | not attempted | |
2. | Average days in inventory | not attempted | days |
3. | Receivables turnover ratio | not attempted | |
4. | Average collection period | not attempted | days |
5. | Asset turnover ratio | not attempted | |
6. | Profit margin on sales | not attempted | % |
7. | Return on assets | not attempted | % |
8. | Return on shareholders equity | not attempted | % |
9. | Equity multiplier | not attempted | times |
10. | Return on shareholders equity (using the DuPont framework) | not attempted | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started