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Selected information from the comparative financial statements of Sky Company for the year ended December 31, appears below: Selected information from the comparative financial statements
Selected information from the comparative financial statements of Sky Company for the year ended December 31, appears below: Selected information from the comparative financial statements of Sky Company for the year ended December 31, appears below: 2020 2019 Accounts receivable (net) $270,000 $300,000 Inventory 210,000 240,000 Total assets 1,800,000 1,200,000 Current liabilities 210,000 165,000 Long-term debt 600,000 450,000 Net credit sales 1,995,000 1,050,000 Cost of goods sold 1,350,000 795,000 Interest expense 75,000 37.500 Income tax expense 90,000 43,500 Net income 225,000 127.500 Required: Compute the following ratios at 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 earned in 2020
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