Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help, please! Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 Cash $ 15,000 Accounts receivable (net) 71,000 Inventory
Help, please!
Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 Cash $ 15,000 Accounts receivable (net) 71,000 Inventory 61,000 Plant assets (net) 197,000 $344,000 Accounts payable $50,000 Mortgage payable (15%) 108,000 Common stock, $10 par 138,500 Retained earnings 47,500 $344,000 2019 $30,000 60,000 50,000 175,000 $315,000 $59,200 108,000 124,500 23,300 $315,000 Additional information for 2020: 1. 2. 3. 4. 5. Net income was $25,700. Sales on account were $412,500. Sales returns and allowances amounted to $19,500. Cost of goods sold was $199,800. Net cash provided by operating activities was $45,600. Capital expenditures were $23,800, and cash dividends were $10,100. Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.) (a) Current ratio (b) Accounts receivable turnover times (c) Average collection period days (d) Inventory turnover times (e) Days in inventory days (f) Free cash flowStep 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