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Selected information from the comparative financial statements of Blue Company for the year ended December 31, appears below: Accounts receivable Inventory Total assets Current liabilities
Selected information from the comparative financial statements of Blue Company for the year ended December 31, appears below: Accounts receivable Inventory Total assets Current liabilities Long-term debt Net credit sales Cost of goods sold Interest expense Income tax expense Net income 2020 $540,000 420,000 3,600,000 420,000 1,200,000 3,990,000 2,700,000 150,000 180.000 450,000 2019 $600,000 480,000 2,400,000 330,000 900,000 2,100,000 1,590,000 75.000 87,000 255,000 Required: Compute the following ratios on December 31, 2020 a. Inventory turnover for 2020 b. Accounts receivable turnover for 2020 c. The debt to assets ratio for 2020 d. Return on assets for 2020 e. Times interest eamed in 2020 Paragraph B 7
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