Question
Help me fix these please. The green is correct and the red is wrong. Example how you got the answer please. I really thought I
Help me fix these please. The green is correct and the red is wrong. Example how you got the answer please. I really thought I did it correctly :(.
Exercise 13.9 Calculating ratios. LO 13-6
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances.
Cash | $ | 21,945 | |
Accounts receivable | 46,400 | ||
Note receivable, due 2020 | 8,200 | ||
Merchandise inventory | 34,400 | ||
Prepaid insurance | 2,220 | ||
Supplies | 1,280 | ||
Equipment | 42,200 | ||
Accumulated depreciation, equipment | 22,200 | ||
Note payable to bank, due 2020 | 22,000 | ||
Accounts payable | 26,480 | ||
Interest payable | 220 | ||
Sales | 523,500 | ||
Sales discounts | 1,900 | ||
Cost of goods sold | 380,555 | ||
Accounts Receivable at December 31, 2018, was $55,800. Merchandise inventory at December 31, 2018, was $57,300. Based on the account balances above, calculate the following:
- The gross profit percentage.
- Working capital.
- The current ratio.
- The inventory turnover.
- The accounts receivable turnover. All sales were on credit.
Can't remember if I got D correct. I think I did.
Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required a Required b Required c Required d Required e The gross profit percentage Gross Profit Percentage Choose Gross Profit Choose Numerator Denominator Percentage Net sales Gross profit $ 132,045 512,600 25.8% A Working capital Working Capital Choose Denominator Working capital Choose Numerator Current liabilities Current assets 114,425( $ 48,700 65,725 The current ratio. Current Ratio Choose Choose Current Numerator Denominator Ratio Current assets Current liabilities $ 114,425 X $ 48,700 2.35 Accounts Receivable Turnover Choose Accounts Receivable Turnover Choose Denominator Numerator Average accounts receivable Net credit sales $ $ 51,800( 521,600 10.07 times Complete this question by entering your answers in the tabs below. Required e Required c Required d Required a Required b The inventory turnover. Inventory Turnover Choose Numerator Choose Denominator Inventory Turnover Cost of goods sold Average inventory 380,555 8.30 times $ 45,850Step by Step Solution
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