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Next Monday 15. Armada Company has these comparative balance sheet data: ARMADA COMPANY Cash Receivables (net) Inventories Balance Sheets December 31, 2012 2011 $

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Next Monday 15. Armada Company has these comparative balance sheet data: ARMADA COMPANY Cash Receivables (net) Inventories Balance Sheets December 31, 2012 2011 $ 40,000 $ 30,000 65,000 60,000 60,000 50,000 Plant assets (net) Accounts payable Mortgage payable (15%, due in 15 years) Common stock, $10 par Retained earnings 185,000 $350.000 $ 50,000 100,000 180,000 $320,000 $ 60,000 100,000 140,000 120,000 60,000 40,000 $350.000 $320,000 Additional information for 2012: 1. Net income was $25,000. 2. Sales on account were $450,000. Sales returns and allowances amounted to $25,000. 3. Cost of goods sold was $275,000 4. Net cash provided by operating activities was $49,000. 5. Capital expenditures were $23,000, and cash dividends were $18,000. Instructions Compute the following ratios at December 31, 2012. (x) Current. (e) Days in inventory (b) Receivables turnover. (f) Cash debt coverage. (c) Average collection period. (g) Current cash debt coverage. (d) Inventory turnover. (h) Free cash flow.

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