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The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash $
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances.
Cash | $ | 32,960 | |
Accounts receivable | 46,600 | ||
Note receivable, due 2020 | 8,400 | ||
Merchandise inventory | 34,600 | ||
Prepaid insurance | 2,240 | ||
Supplies | 1,300 | ||
Equipment | 42,400 | ||
Accumulated depreciation, equipment | 22,400 | ||
Note payable to bank, due 2020 | 24,000 | ||
Accounts payable | 24,260 | ||
Interest payable | 240 | ||
Sales | 524,500 | ||
Sales discounts | 2,100 | ||
Cost of goods sold | 345,375 | ||
Accounts Receivable at December 31, 2018, was $55,300. Merchandise inventory at December 31, 2018, was $57,500. Based on the account balances above, calculate the following:
- The gross profit percentage.
- Working capital.
- The current ratio.
- The inventory turnover.
- The accounts receivable turnover. All sales were on credit.
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