Question
P13-5A. Changes in Various Ratios Presented below is selected information for Turner Company: Current Year Previous Year Sales revenue . . . . . .
P13-5A. Changes in Various Ratios
Presented below is selected information for Turner Company:
Current Year Previous Year Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $950,000 $850,000 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575,000 545,000 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 20,000 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000 30,000 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 55,000 Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 60,000 Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 45,000 Accounts receivable (net), December 31 . . . . . . . . . . . . . . . . . . . . . 126,000 120,000 Inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,000 160,000 Stockholders equity, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . 450,000 400,000 Total assets, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 675,000 Required
a. Calculate the following ratios for the current year. The previous year results are given for com- parative purposes
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