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Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,100 Cost of goods sold (6,325 )
Financial statements for Askew Industries for 2021 are shown below (in thousands):
2021 Income Statement | |||
Net sales | $ | 9,100 | |
Cost of goods sold | (6,325 | ) | |
Gross profit | 2,775 | ||
Operating expenses | (2,125 | ) | |
Interest expense | (210 | ) | |
Income tax expense | (176 | ) | |
Net income | $ | 264 | |
Comparative Balance Sheets | |||||||
Dec. 31 | |||||||
2021 | 2020 | ||||||
Assets | |||||||
Cash | $ | 610 | $ | 510 | |||
Accounts receivable | 610 | 410 | |||||
Inventory | 810 | 610 | |||||
Property, plant, and equipment (net) | 2,100 | 2,200 | |||||
$ | 4,130 | $ | 3,730 | ||||
Liabilities and Shareholders Equity | |||||||
Current liabilities | $ | 1,160 | $ | 910 | |||
Bonds payable | 1,450 | 1,450 | |||||
Common stock | 610 | 610 | |||||
Retained earnings | 910 | 760 | |||||
$ | 4,130 | $ | 3,730 | ||||
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.)
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)
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