Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Redlands, Inc. presents the following Income Statement and Balance Sheet for 2014. Income Statement Sales revenues $200 Cost of goods sold 120 Gross profit 80

Redlands, Inc. presents the following Income Statement and Balance Sheet for 2014.

Income Statement

Sales revenues

$200

Cost of goods sold

120

Gross profit

80

Operating expenses

50

Net income

$ 30

Balance Sheet

Assets

Liabilities

Cash

$ 60

Accounts payable

$ 70

Accounts receivable

90

Inventory

140

Shareholders Equity

Current assets

290

Common stock

240

Retained earnings

190

Equipment

210

Total S/Equity

430

Total assets

$500

Total Liabilities and S/E

$500

Required: Use the income statement and balance sheet data (in dollars) above to compute the following ratios:

Return on equity

Working capital (current) ratio

Inventory turnover

Accounts receivable turnover

Total debt to total capital ratio

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

Guide To The Implementation And Auditing Of ISMS Controls Based On ISO/IEC 27001

Authors: Edward Humphreys

1st Edition

0580829103, 978-0580829109

More Books

Students also viewed these Accounting questions