Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required a. Current ratio to 1 b. Quick ratio to 1 c. Days sales uncollected days d. Inventory turnover times e. Days sales in inventory

image text in transcribed

Required a. Current ratio to 1 b. Quick ratio to 1 c. Days sales uncollected days d. Inventory turnover times e. Days sales in inventory days f. Ratio of pledged plant assets to secured liabilities to 1 g. Times interest earned times h. Profit margin % i. Total asset turnover times j. Return on total assets % k. Return on common shareholders equity %

\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ For Year Ended December 31, 2023} \\ \hline Net sales & \multicolumn{2}{|c|}{$1,156,000} \\ \hline Cost of goods sold: & & \\ \hline Inventory, Dec. 31, 2022 & $ & 84,860 \\ \hline Purchases & & 619,840 \\ \hline Goods available for sale & $ & 704,700 \\ \hline Inventory, Dec. 31, 2023 & & 61,890 \\ \hline Cost of goods sold & & 642,810 \\ \hline Gross profit from sales & $ & 513,190 \\ \hline Operating expenses & & 292,360 \\ \hline Operating profit & $ & 220,830 \\ \hline Interest expense & & 13,300 \\ \hline Profit before taxes & $ & 207,530 \\ \hline Income taxes & & 19,814 \\ \hline Profit & $ & 187,716 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \begin{tabular}{c} Outdoor Waterworks Inc. \\ Balance Sheet \\ December 31,2023 \end{tabular} & \\ \hline \multicolumn{2}{|l|}{ Assets } \\ \hline Cash & $24,100 \\ \hline Current non-strategic investments & 26,760 \\ \hline Accounts receivable, net & 53,980 \\ \hline Notes receivable & 12,460 \\ \hline Inventory & 61,890 \\ \hline Prepaid expenses & 6,140 \\ \hline Plant and equipment, net & 336,020 \\ \hline Total assets & $521,350 \\ \hline Liabilities and Equity & \\ \hline Accounts payable & $49,600 \\ \hline Accrued wages payable & 6,620 \\ \hline Income taxes payable & 7,530 \\ \hline \begin{tabular}{l} Long-term note payable, secured by mortgage on \\ plant \end{tabular} & 119,700 \\ \hline Common shares, 160,000 shares & 201,500 \\ \hline Retained earnings & 136,400 \\ \hline Total liabilities and equity & $521,350 \\ \hline \end{tabular}

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

Retirement Income Recipes In R From Ruin Probabilities To Intelligent Drawdowns

Authors: Moshe Arye Milevsky

1st Edition

3030514331, 9783030514334

More Books

Students also viewed these Accounting questions

Question

Y = 5x 3

Answered: 1 week ago

Question

The tongue has two groups of muscleS.true or fAlse

Answered: 1 week ago