Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial statements for Askew Industries for 2021 are shown below (in thousands): Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do

Financial statements for Askew Industries for 2021 are shown below (in thousands):

image text in transcribed

Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.)

image text in transcribed

2021 Income Statement Net sales $ 9,823 Cost of goods sold (6,500) Gross profit 3,300 Operating expenses (2,300) Interest expense (280) Income tax expense (288) Net income $ 432 Comparative Balance Sheets Dec. 31 2021 2029 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 680 $ 589 689489 889 689 2,800 2,900 $5,840 $4,640 Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained earnings $1.580 1,800 $1.330 1.800 688 688 989839 $5,640 $4,640 8.33 43.82 days 16.90 21.60 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 equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) times

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_2

Step: 3

blur-text-image_3

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

Risk Based Tax Audits Approaches And Country Experiences

Authors: Munawer Sultan Khwaja, Rajul Awasthi, Jan Loeprick

1st Edition

0821387545, 978-0821387542

More Books

Students also viewed these Accounting questions