Question
Frizell Company has the following comparative balance sheet data Frizell Company Balance Sheets December 31 2017 2016 Cash $15,000 $30,000 Accounts receivable (net) 70,000 60,000
Frizell Company has the following comparative balance sheet data
Frizell Company
Balance Sheets
December 31
2017 2016
Cash $15,000 $30,000
Accounts receivable (net) 70,000 60,000
Inventory 60,000 50,000
Plant assets (net) 200,000 180,000
$345,000 $320,000
Accounts payable $50,000 $60,000
Mortgage payable (6%) 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 55,000 40,000
$345,000 $320,000
Additional information for 2017:
- Net Income was $25,000
- 2. Sales on account were $410,000. Sales returns and allowances were $20,000
- Cost of goods sold was $ 198,000
Instrutions
Compute the following ratios at December 31, 2017
(a) Current ratio (c) Accounts receivable turnover
(b) Acid- test ration (d) Inventory turnover
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started