Question
Selected information from the 2020 and 2021 financial statements of Super Ratio Corporation is presented below: As of December 31 2021 2020 Cash $21,000 $35,000
Selected information from the 2020 and 2021 financial statements of Super Ratio Corporation is presented below:
As of December 31
| 2021 | 2020 | ||
Cash | $21,000 | $35,000 | ||
Marketable securities (current) | 27,000 | 22,000 | ||
Accounts receivable (net) | 60,000 | 98,000 | ||
Inventory | 105,000 | 142,000 | ||
Prepaid expenses | 5,000 | 3,000 | ||
Land and building (net) | 247,000 | 315,000 | ||
Accounts payable | 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 2021 2020 | |||
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 | $30,000 | $38,000 | ||
Interest expense | 6,000 | 9,000 | ||
Income tax expense | 6,000 | 7,000 |
Compute the following ratios for Super Ratio Corporation as of December 31, 2021. Round your answers to two decimal places.
- Current ratio
- Accounts receivable turnover
- Inventory turnover
- Asset turnover
- Times interest earned
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started