Question
Selected information from the comparative financial statements of Great Inc. for the year ended December 31, appears below: 2021 2020 Accounts receivable $ 380,000 $
Selected information from the comparative financial statements of Great Inc. for the year ended December 31, appears below:
| 2021 | 2020 |
| Accounts receivable | $ 380,000 | $ 320,000 |
| Inventory | 130,000 | 145,000 |
| Total assets | 1,800,000 | 1,650,000 |
| Current liabilities | 196,000 | 105,000 |
| Non-current liabilities | 400,000 | 322,000 |
| Net credit sales | 1,900,000 | 1,250,000 |
| Cost of goods sold | 700,000 | 619,000 |
| Interest expense | 75,000 | 30,000 |
| Income tax expense | 60,000 | 44,000 |
| Profit | 210,000 | 97,000 |
Instructions Answer the following questions relating to the year ended December 31, 2021. Show calculations.
| a) | The inventory turnover for 2021 is ________. |
| b) | The interest coverage in 2021 is ________. |
| c) | The debt to total assets for 2021 is ________. |
| d) | The receivables turnover for 2021 is ________. |
| e) | The return on assets for 2021 is ________ |
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Petroleum Accounting: Principles, Procedures; And Issues
Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou
8th Edition
0940966328, 978-0940966321
