Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show calculations/work/formula. thank you! Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,400 Cost

image text in transcribedimage text in transcribedPlease show calculations/work/formula. thank you!

Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,400 Cost of goods sold (6,400) Gross profit 3,000 Operating expenses (2,200) Interest expense (240) Income tax expense (224) Net income $ 336 Comparative Balance Sheets Dec. 31 2021 2020 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 640 640 840 2,400 $4,520 $ 540 440 640 2,500 $4,120 Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained earnings $1,340 1,600 640 940 $4,520 $1,090 1,600 640 790 $4, 120 Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) days days 1. Inventory turnover ratio 2. Average days in inventory 3 Receivables turnover ratio 4. Average collection period 5. Asset turnover ratio 6. Profit margin on sales 7. Return on assets 8. Return on equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) % % % times %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Auditing Using Controls To Protect Information Assets

Authors: Chris Davis, Mike Schiller, Kevin Wheeler

3rd Edition

1260453227, 978-1260453225

More Books

Students also viewed these Accounting questions

Question

How competitive is the external environment of your organization?

Answered: 1 week ago

Question

What other organizations compete on this issue?

Answered: 1 week ago

Question

What significant opposition exists?

Answered: 1 week ago