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Posted on Jul 21, 2024

For each efficiency ratio, select the appropriate formula and then calculate the ratio. (If applicable, review the transaction detail needed to compute each formula exactly

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For each efficiency ratio, select the appropriate formula and then calculate the ratio. (If applicable, review the transaction detail needed to compute each formula exactly as presented. Do not round any intermediary computations except for ratio results that are included in the computation of another ratio. Round the accounts receivable turnover, the asset turnover, and the rate of return on total assets to two decimal places, X.XX. Round the day's sales in receivables to the nearest whole day. Abbreviations used: AR = Accounts receivable; ROR = rate of return; STI = short-term investments.) (Click the icon to view the income statement.) Click the icon to view the balance sheet.) Formula Ratio Efficiency: (i) AR turnover (ii) Day's sales in receivables days = (iii) Asset turnover (iv) ROR on total assets = Specialty Appliance Center-Coronado Balance Sheet December 31, 2024 Assets Current Assets: Cash $ 467,796 Petty Cash 120 Accounts Receivable $ 270,000 (10,800) Less: Allowance for Bad Debts 259,200 257,000 Merchandise Inventory Office Supplies Prepaid Insurance 220 1,700 Interest Receivable 2,600 260,000 Notes Receivable Total Current Assets $ 1,248,636 Property, Plant, and Equipment: Land 50,000 Building 495,000 (14,000) 481,000 Less: Accumulated Depreciation Building Store Fixtures 105,000 (7,000) 98,000 Less: Accumulated DepreciationStore Fixtures Office Equipment 55,000 (22,000) 33,000 Less: Accumulated DepreciationOffice Equipment Total Property, Plant, and Equipment Intangible Assets: 662,000 Franchise 48,600 $ 1,959,236 Total Assets Liabilities Liabilities Current Liabilities: Accounts Payable $ 410,000 10,000 Interest Payable Total Current Liabilities 420,000 Long-term Liabilities: Notes Payable 200,000 Total Liabilities 620,000 Owner's Equity $ Bamerd, Capital 1,339,236 $ Total Liabilities and Owner's Equity 1,959,236 Specialty Appliance Center-Coronado Income Statement Year Ended December 31, 2024 Net Sales Revenue $ 1,965,000 853,000 Cost of Goods Sold 1,112,000 $ 58,950 Gross Profit Operating Expenses: Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense 210,000 13,000 1,700 787 10,800 2,420 750 Supplies Expense Bad Debt Expense Bank Expense Credit Card Expense Depreciation ExpenseBuilding Depreciation ExpenseStore Fixtures Depreciation Expense-Office Equipment Amortization Expense Franchise 14,000 7,000 22,000 5,400 7 Cash Short and Over 346,814 765, 186 Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 8,050 (10,000) Interest Expense Total Other Income and (Expenses) (1,950) $ 763,236 Net Income (Loss) For each efficiency ratio, select the appropriate formula and then calculate the ratio. (If applicable, review the transaction detail needed to compute each formula exactly as presented. Do not round any intermediary computations except for ratio results that are included in the computation of another ratio. Round the accounts receivable turnover, the asset turnover, and the rate of return on total assets to two decimal places, X.XX. Round the day's sales in receivables to the nearest whole day. Abbreviations used: AR = Accounts receivable; ROR = rate of return; STI = short-term investments.) (Click the icon to view the income statement.) Click the icon to view the balance sheet.) Formula Ratio Efficiency: (i) AR turnover (ii) Day's sales in receivables days = (iii) Asset turnover (iv) ROR on total assets = Specialty Appliance Center-Coronado Balance Sheet December 31, 2024 Assets Current Assets: Cash $ 467,796 Petty Cash 120 Accounts Receivable $ 270,000 (10,800) Less: Allowance for Bad Debts 259,200 257,000 Merchandise Inventory Office Supplies Prepaid Insurance 220 1,700 Interest Receivable 2,600 260,000 Notes Receivable Total Current Assets $ 1,248,636 Property, Plant, and Equipment: Land 50,000 Building 495,000 (14,000) 481,000 Less: Accumulated Depreciation Building Store Fixtures 105,000 (7,000) 98,000 Less: Accumulated DepreciationStore Fixtures Office Equipment 55,000 (22,000) 33,000 Less: Accumulated DepreciationOffice Equipment Total Property, Plant, and Equipment Intangible Assets: 662,000 Franchise 48,600 $ 1,959,236 Total Assets Liabilities Liabilities Current Liabilities: Accounts Payable $ 410,000 10,000 Interest Payable Total Current Liabilities 420,000 Long-term Liabilities: Notes Payable 200,000 Total Liabilities 620,000 Owner's Equity $ Bamerd, Capital 1,339,236 $ Total Liabilities and Owner's Equity 1,959,236 Specialty Appliance Center-Coronado Income Statement Year Ended December 31, 2024 Net Sales Revenue $ 1,965,000 853,000 Cost of Goods Sold 1,112,000 $ 58,950 Gross Profit Operating Expenses: Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense 210,000 13,000 1,700 787 10,800 2,420 750 Supplies Expense Bad Debt Expense Bank Expense Credit Card Expense Depreciation ExpenseBuilding Depreciation ExpenseStore Fixtures Depreciation Expense-Office Equipment Amortization Expense Franchise 14,000 7,000 22,000 5,400 7 Cash Short and Over 346,814 765, 186 Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 8,050 (10,000) Interest Expense Total Other Income and (Expenses) (1,950) $ 763,236 Net Income (Loss)