Question
The following selected information is available for Bradley Corporation: Income Statement Data Sales.................................. $650,000 Cost of Goods Sold................425,000 Income Before Income Taxes......78,000 Net Income............................54,600 Balance
The following selected information is available for Bradley Corporation:
Income Statement Data
Sales.................................. $650,000
Cost of Goods Sold................425,000
Income Before Income Taxes......78,000
Net Income............................54,600
Balance Sheet DataBeginning Balance Ending Balance
Cash...................................... $19,500$ 15,000
Accounts Receivable (net)............ 65,00060,000
Inventory................................ 71,50064,500
Equipment (net)........................... 195,000 183,900
Total Assets.................................$351,000$323,400
Current Liabilities..........................$62,400$52,700
Long-term Notes Payable.................97,500100,000
Total Liabilities..............................$ 159,900$152,700
Required:
Use the above information to calculate the following for the current year:
(a) Current ratio.
(b) Acid-test ratio.
(c) Accounts receivable turnover.
(d) Days' sales uncollected.
(e) Inventory turnover.
(f) Days' sales in inventory.
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