Lizzies Clothing Barn, Inc.

Statement of Financial Position

December 31, 20X4

Current assets Current liabilities

Cash.. $1,000,000 Accounts payable. $5,500,000

Accounts receivable (net). 3,200,000 Salaries payable.. 800,000

Marketable securities 600,000 Dividends payable.. 300,000

Inventory... 3,500,000 Interest payable... 250,000

Prepaid rent... 600,000 Income tax payable..... 220,000

Prepaid insurance.. 100,000 Total current liabilities. 7,070,000

Total current assets 9,000,000 Long term debt

Property & equipment Note payable. 2,300,000

Building (net) 3,900,000 Mortgage payable. 1,400,000

Equipment (net) 6,200,000 Total long-term debt... 3,700,000

Total property & equipment... \10,100,000 Total liabilities... $10,770,000

Other assets Stockholders equity

Investments... 1,500,000 Common stock 6,000,000

Goodwill. 700,000 Retained earnings.. 4,530,000

Total other assets. 2,200,000 Total stockholders equity.. 10,530,000

Total assets. $21,300,000 Total liabilities & stockholders equity $21,300,000

Lizzies Clothing Barn, Inc.

Income Statement

For the Year Ended December 31, 20X4

Sales.. $27,000,000

Cost of goods sold... 12,000,000

Gross profit 15,000,000

Operating expenses:

General and administrative expenses $4,100,000

Selling expenses 6,200,000

Total operating expenses 10,300,000

Operating income. 4,700,000

Nonoperating items:

Interest revenue.. (40,000)

Interest expense. 222,000

Nonoperating expense (net) 182,000

Income before taxes. 4,518,000

Income tax expense.. 1,807,000

Net income.. $2,711,000

(See additional financial information on next page.)

Additional financial information:

600,000 weighted average number of common shares were issued and outstanding throughout 20X4.

The accounts receivable balance (net of uncollectible accounts) on December 31, 20X3 was $2,500,000. All sale are credit sales.

The inventory balance on December 31, 20X3 was $4,000,000.

$1,500,000 in total dividends were declared in 20X4.

Total stockholders equity on December 31, 20X3 was $9,516,000.

Total assets on December 31, 20X3 were $19,625,000.

The market price per share of common stock on December 31, 20X4 was $47.

There was no preferred stock.

2. The accounts receivable turnover for 20X4 was:? The average collection period for 20X4 was:? The operating cycle for 20X4 was:? The debt ratio for 20X4 was:? The debt to equity ratio for 20X4 was:? The times interest earned ratio for 20X4 was:?