Question
Selected comparative financial statement data for Page Inc. are shown below. PAGE INC. Statement of Financial Position (partial) December 31 (in thousands) 2021 2020 2019
Selected comparative financial statement data for Page Inc. are shown below.
PAGE INC. Statement of Financial Position (partial) December 31 (in thousands) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2021 | 2020 | 2019 | |||||||||
Current assets | |||||||||||
Cash | $ | 30 | $ | 91 | $ | 60 | |||||
Trading investments | 55 | 60 | 40 | ||||||||
Accounts receivable, net | 674 | 589 | 498 | ||||||||
Inventory | 622 | 528 | 570 | ||||||||
Prepaid expenses | 41 | 52 | 29 | ||||||||
Total current assets | $ | 1,422 | $ | 1,320 | $ | 1,197 | |||||
Total current liabilities | $ | 881 | $ | 830 | $ | 753 |
Additional information:
(in thousands) | 2021 | 2020 | 2019 | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Allowance for doubtful accounts | $ | 50 | $ | 45 | $ | 40 | ||||
Credit sales | 4,153 | 3,957 | 3,664 | |||||||
Cost of goods sold | 2,912 | 2,672 | 2,341 |
(a)
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Your answer is partially correct.
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 | $enter working capital in thousands of dollars | $enter working capital in thousands of dollars | |||||
Current ratio | enter current ratio rounded to 2 decimal places | :1 | enter current ratio rounded to 2 decimal places | :1 | |||
Receivables turnover | enter receivables turnover in times rounded to 1 decimal place | times | enter receivables turnover in times rounded to 1 decimal place | times | |||
Collection period | enter collection period in days rounded to 0 decimal places | days | enter collection period in days rounded to 0 decimal places | days | |||
Inventory turnover | enter inventory turnover in times rounded to 1 decimal place | times | enter inventory turnover in times rounded to 1 decimal place | times | |||
Days sales in inventory | enter days sales in inventory rounded to 0 decimal places | days | enter days sales in inventory rounded to 0 decimal places | days |
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