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Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,400 Cost of goods sold (6,400 )
Financial statements for Askew Industries for 2021 are shown below (in thousands):
2021 Income Statement | |||
Net sales | $ | 9,400 | |
Cost of goods sold | (6,400 | ) | |
Gross profit | 3,000 | ||
Operating expenses | (2,200 | ) | |
Interest expense | (240 | ) | |
Income tax expense | (224 | ) | |
Net income | $ | 336 | |
Comparative Balance Sheets | |||||||
Dec. 31 | |||||||
2021 | 2020 | ||||||
Assets | |||||||
Cash | $ | 640 | $ | 540 | |||
Accounts receivable | 640 | 440 | |||||
Inventory | 840 | 640 | |||||
Property, plant, and equipment (net) | 2,400 | 2,500 | |||||
$ | 4,520 | $ | 4,120 | ||||
Liabilities and Shareholders Equity | |||||||
Current liabilities | $ | 1,340 | $ | 1,090 | |||
Bonds payable | 1,600 | 1,600 | |||||
Common stock | 640 | 640 | |||||
Retained earnings | 940 | 790 | |||||
$ | 4,520 | $ | 4,120 | ||||
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.)
\begin{tabular}{c|l|l|l} \hline 1. & Inventory turnover ratio & & \\ \hline 2. & Average days in inventory & & days \\ \hline 3. & Receivables tumover ratio & & \\ \hline 4. & Average collection period & days \\ \hline 5. & Asset turnover ratio & & \\ \hline 6. & Profit margin on sales & % \\ \hline 7. & Return on assets & % \\ \hline 8. & Return on equity & % \\ \hline 9. & Equity multiplier & times \\ \hline 10. & Return on equity (using the DuPont framework) & % \\ \hline \end{tabular}
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