Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected comparative financial statement data for Kokomo Inc. are shown below. KOKOMO INC. Statement of Financial Position (partial) December 31 (in thousands) 2021 2020 2019

Selected comparative financial statement data for Kokomo Inc. are shown below.

KOKOMO INC. Statement of Financial Position (partial) December 31 (in thousands)
2021 2020 2019
Current assets
Cash $ 30 $ 92 $ 60
Trading investments 56 60 40
Accounts receivable, net 675 589 492
Inventory 627 522 575
Prepaid expenses 41 52 29
Total current assets $ 1,429 $ 1,315 $ 1,196
Total current liabilities $ 867 $ 819 $ 755

Additional information:

(in thousands) 2021 2020 2019
Allowance for doubtful accounts $ 50 $ 45 $ 40
Credit sales 4,215 3,934 3,672
Cost of goods sold 2,876 2,658 2,330

Calculate all possible liquidity ratios for 2021 and 2020. (Round current ratio to 2 decimal places e.g. 2.66. Round receivables turnover and inventory turnover to 1 decimal place e.g. 6.2. Round collection period and days sales in inventory to 0 decimal places e.g. 1,266. Enter working capital amounts in thousands e.g. 525.)

2021 2020

Working capital
Current ratio :1 :1
Receivables turnover times times
Collection period days days
Inventory turnover times times
Days sales in inventory days days

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

European Financial Reporting Adapting To A Changing World

Authors: J. Flower

2nd Edition

0333685180, 9780333685181

More Books

Students also viewed these Accounting questions