Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected information from the 2014 and 2013 financial statements of Simple Unit Corporation is presented below: As of December 31 2014 2013 Cash Marketable

image text in transcribedimage text in transcribed

Selected information from the 2014 and 2013 financial statements of Simple Unit Corporation is presented below: As of December 31 2014 2013 Cash Marketable securities (current) 21,000 35,000 27,000 22,000 Inventory Accounts receivable (net) Prepaid expenses Land and building (net) Accounts payable 60,000 98,000 105,000 142,000 5,000 3,000 247,000 315,000 57,000 75,000 Accrued expenses 10,000 14,000 Notes payable (short-term) 8,000 4,000 Bonds payable (due in three years) 52,000 66,000 As of December 31 2014 2013 Cash sales 750,000 675,000 Credit sales (percent of cash sales) 82% 85% Cost of goods sold (percent of total sales) 60% 58% Net income Interest expense Income tax expense 30,000 38,000 6,000 9,000 6,000 7,000 Please compute the following ratios for Simple Unit Corporation as of December 31, 2014. Round your answers to two decimal places. a. Current ratio b. Accounts receivable turnover c. Inventory turnover d. Asset turnover e. Times interest earned

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

Project Finance in Theory and Practice

Authors: Stefano Gatti

2nd edition

978-9382291589, 123919460, 978-0124157538, 978-0123919465

More Books

Students also viewed these Finance questions

Question

Describe the benefits of studying intersectionality.

Answered: 1 week ago

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago