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Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 8,800 Cost of goods sold (6,200 )
Financial statements for Askew Industries for 2021 are shown below (in thousands):
2021 Income Statement | |||
Net sales | $ | 8,800 | |
Cost of goods sold | (6,200 | ) | |
Gross profit | 2,600 | ||
Operating expenses | (2,000 | ) | |
Interest expense | (160 | ) | |
Income tax expense | (176 | ) | |
Net income | $ | 264 | |
Comparative Balance Sheets | |||||||
Dec. 31 | |||||||
2021 | 2020 | ||||||
Assets | |||||||
Cash | $ | 560 | $ | 460 | |||
Accounts receivable | 560 | 360 | |||||
Inventory | 760 | 560 | |||||
Property, plant, and equipment (net) | 1,600 | 1,700 | |||||
$ | 3,480 | $ | 3,080 | ||||
Liabilities and Shareholders Equity | |||||||
Current liabilities | $ | 860 | $ | 610 | |||
Bonds payable | 1,200 | 1,200 | |||||
Common stock | 560 | 560 | |||||
Retained earnings | 860 | 710 | |||||
$ | 3,480 | $ | 3,080 | ||||
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 days
3.Receivables turnover ratio
4.Average collection perioddays
5.Asset turnover ratio
6.Profit margin on sales %
7.Return on assets %
8.Return on equity %
9.Equity multiplier times
10.Return on equity (using the DuPont framework) %
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