Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 5 ratio problems use the data below. 1. What is the current ratio as of December 31, 2020? Answer to the nearest decimal point

The 5 ratio problems use the data below.

1. What is the current ratio as of December 31, 2020? Answer to the nearest decimal point (for example, 120.5).

2. What is the Accounts Receivable Turnover ratio as of December 31, 2020? Answer to the nearest decimal point (for example, 120.5).

3. What is the Days' Sales Uncollected (in days) as of December 31, 2020? Answer to the nearest decimal point (for example, 120.5).

4. What is the Inventory Turnover ratio as of December 31, 2020? Answer to the nearest decimal point (for example, 120.5).

5. What is the number of Days' Sales in Inventory as of December 31, 2020? Answer to the nearest decimal point (for example, 120.5).

Balance as Of December 31st 12/31/2020 12/31/2019
Cash $ 200 $ 600
Accounts Receivable 1,000 800
Inventory 2,000 1,600
Total Current Assets 3,200 3,000
Other Assets 600 400
Total Assets $ 3,800 $ 3,400
Current Liabilities $ 1,600 $ 2,200
Other Liabilities 1,200 200
Total Liabilities 2,800 2,400
Stockholders' Equity 1,000 1,000
Total Liabilities and S/H Equity $ 3,800 $ 3,400
12/31/2020
Net Sales $ 4,500
Cost of Goods Sold 3,600
Gross Profit 900
Selling, General & Admin. Expenses 300
Net Income $ 600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting The Cornerstone Of Business Decision Making

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

8th Edition

0357715349, 978-0357715345

More Books

Students also viewed these Accounting questions