Question
Items 41-50 is based on the following: 20202021 A/R, net P 40,000P 45,000 Inventory40,00050,000 Current Assets 120,000 140,000 Total Assets, net 700,000 750,000 Current Liabilities
Items 41-50 is based on the following:
20202021
A/R, net P 40,000P 45,000
Inventory40,00050,000
Current Assets 120,000 140,000
Total Assets, net 700,000 750,000
Current Liabilities 70,000 50,000
Long-term Liabilities 250,000 300,000
Net Sales 550,000 500,000
Cash Sales 200,000 200,000
Cost of Sales310,000 345,000
Required:
41-42. Current ratio for 2020 and 2021
43-44. Receivable turnover for 2020 and 2021
45-46. Inventory turnover for 2020 and 2021
47-48. Debt-to-equity ratio for 2020 and 2021
49-50. Working capital for 2020 and 2021
Formulas:
Current ratio= current assets/current liabilities
Receivable turnover= Credit Sales/Average Receivable
Inventory turnover= Cost of Sales/Average Inventory
Debt-to-equity= Debt/Equity
Working capital=current assets-current liabilities
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Managerial Accounting The Cornerstone Of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
8th Edition
0357715349, 978-0357715345
