Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,000 Cost of goods sold (6,300 )
Financial statements for Askew Industries for 2021 are shown below (in thousands):
2021 Income Statement | |||
Net sales | $ | 9,000 | |
Cost of goods sold | (6,300 | ) | |
Gross profit | 2,700 | ||
Operating expenses | (2,100 | ) | |
Interest expense | (200 | ) | |
Income tax expense | (100 | ) | |
Net income | $ | 300 | |
Comparative Balance Sheets | |||||||
Dec. 31 | |||||||
2021 | 2020 | ||||||
Assets | |||||||
Cash | $ | 600 | $ | 500 | |||
Accounts receivable | 600 | 400 | |||||
Inventory | 800 | 600 | |||||
Property, plant, and equipment (net) | 2,000 | 2,100 | |||||
$ | 4,000 | $ | 3,600 | ||||
Liabilities and Shareholders Equity | |||||||
Current liabilities | $ | 1,100 | $ | 850 | |||
Bonds payable | 1,400 | 1,400 | |||||
Common stock | 600 | 600 | |||||
Retained earnings | 900 | 750 | |||||
$ | 4,000 | $ | 3,600 | ||||
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.)
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 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
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