Pacific Corporation reported these figures: (Click the icon to view the balance sheet.) Click the icon to view the income statement.) Pacific Corporation has 3,250,000 shares of common stock outstanding. Its stock has traded recently at $29.20 per share. You would like to gain a better understanding of Pacific Corporation's financial position. Assume all sales are on credit. Read the recuirement a. Inventory turnover Enter the formula on the first line, then calculate the inventory tumover on the next line. (Enter amounts in thousands as provided to you in the problem statement Round your answer to one decimal place.) Cost of goods sold Average inventory Inventory turnover X $ 5.120 $ 1,600 3.2 Income statement Pacific times per year. To determine if this seems reasonable, a comparison with necessary to reach a better conclusion A B 1 1 Pacific Corporation purchases its inventory 2 Income Statement For the Year Ended December 31, 2020 3 sells its inventory 4. (amounts in thousands) 5 2020 6 Sales revenues $ $ 16,425 7 Less: Cost of goods sold 5,120 8 Gross profit $ 11.305 2,705 $ $ 8,600 9 Less: Operating expenses 10 Operating income 11 Less: Interest expense 12 Income before income taxes 13 Less: Income tax expense 400 $ 9.200 5,600 Help me solve this Video Get more help Final check 14 Net Income $ 2,600 Balance sheet Pacific Corporation reported these figures: (Click the icon to view the balance sheet.) (Click the icon to view the income statement.) Pacific Corporation has 3,250 000 shares of common stock outstanding. Its stock has traded recently at $29.20 per share. You w Bre on credit. Read the requirement. 5 2020 2019 6 Assets 7 Current assets: a. Inventory turnover 8 Cash $ 3,000 9 Accounts receivables 5,610 S 2,800 1,700 10 Inventory Enter the formula on the first line, then calculate the inventory tumover on the next line. (Enter amounts in thousands as provided Cost of goods sold Average inventory Inventory tumover $ 5,120 $ 1,600 3.2 2,420 1,500 1,530 + 3,520 11 Other current assets 12 Total current assets 13 Other assets $ 13,630 S 8,450 Pacific times per year. To determine if this seems reasonable, a comparison with would be necessary to reach a better conclusion. 22,500 19,500 27,950 14 Total assets $ 36,130 S 15 Requirement 16 Llabilities industry standards 17 Total current liabilities $ 14,500 S 12,500 the acid-test ratio 8,630 8,450 18 Long-term liabilities 19 Total liabilities 20 23.130 S 20,950 the price/earnings ratio the times-interest-earned ratio - 21 Stockholders' equity Calculate the following ratios for 2020 and interpret the results: a. Inventory turnover . b. Days' sales in receivables c. Acid-test ratio d. Times-interest-eamed e. Gross profit porcentago f. Operating income percentage g. Return on stockholders' equity h. Earnings per share i. Pricelearnings ratio 22 Total common stockholders' equity 13,000 7,000 Print Done Balance sheet 7 Current assets: A 8 Cash $ 5,610 $ 3,000 9 Accounts receivables 2,800 2,420 10 Inventory 1,700 1,500 11 Other current assets 3,520 1,530 12 Total current assets $ 13,630 $ 8,450 13 Other assets 22,500 19,500 14 Total assets $ 36,130$ 27,950 15 16 Liabilities 17 Total current liabilities $ 14,500 12,500 18 Long-term liabilities 8,630 8,450 19 Total liabilities $ 23,130$ 20,950 20 21 Stockholders' equity 22 Total common stockholders' equity 13,000 7,000 23 24 Total liabilities and equity $ 36,130$ 27,950
