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Selected information from the comparative financial statements of Blue Company for the year ended December 31, appears below: 2020 2019 $600,000 Accounts receivable Inventory Total
Selected information from the comparative financial statements of Blue Company for the year ended December 31, appears below: 2020 2019 $600,000 Accounts receivable Inventory Total assets Current liabilities Long-term debt Net credit sales Cost of goods sold Interest expense Income tax expense Net Income $540,000 420,000 3,600,000 420,000 1,200,000 3,990,000 2,700,000 150,000 180,000 450,000 480,000 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 The debt to assets ratio for 2020 d. Return on assets for 2020, e. Times interest earned in 2020, Paragraph B /
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