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I need help with questions 9 - 13 any help would be greatly appreciated :) Earth Inc. declared and paid a cash dividend of $5,525
I need help with questions 9 - 13 any help would be greatly appreciated :)
Earth Inc. declared and paid a cash dividend of $5,525 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets $222,000 127,650 94,350 39,600 4,000 50,750 15,225 $ 35,525 $185,000 111.000 74,000 33,730 3,270 37,000 11,100 $ 25,900 $ 40,000 18,500 25,000 127,000 $210,500 $ 38,000 16,000 22,000 119,000 $195,000 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $1) Retained Earnings Total Liabilities and Stockholders' Equity $ 27,000 3,000 75,500 105,500 25,000 80,000 $210,500 $ 25,000 2,800 92,200 120,000 25,000 50,000 $ 195,000 9. Net of Accounts Receivables totaled $15,000 at the beginning of previous year. Compute the receivables turnover ratios for the current and previous years. Are the current year results better, or worse, than those for the previous year? 10. Compute the days to collect for the current and previous years. Are the current year results better, or worse, than those for the previous year? 11. Inventory Turnover totaled $20,000 at the beginning of previous year. Compute the inventory turnover ratios for the current and previous years. Are the current year results better, or worse, than those for the previous year? 12. Compute the days to sell for the current and previous years. Are the current year results better, or worse, than those for the previous year? 13. Compute the current ratios for the current and previous years. Are the current year results better, or worse, than those for the previous yearStep by Step Solution
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