Ratio Analysis

Selected information from the comparative financial statements of Patrick Parker Inc. for the year ended December 31, appears below: 2021 2020 Accounts receivable $380,000 $320,000 Inventory 130,000 145,000 Total assets 1,800,000 1,650,000 Current liabilities 196,000 105,000 Non-current liabilities 400,000 322,000 Net credit sales 1,900,000 1,250,000 Cost of goods sold 700,000 619,000 Interest expense 75,000 30,000 1 Income tax expense 60,000 44,000 2 Profit 210,000 97,000 3 4 Instructions 5 Answer the following questions relating to the year ended December 31, 2021. 16 a) The inventory turnover for 2021 is 17 b) The interest coverage in 2021 is c) The debt to total assets for 2021 is 19 d) The receivables turnover for 2021 is 20 e) The return on assets for 2021 is 18