Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021

image text in transcribed
image text in transcribed
image text in transcribed
The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021 Net sales $8,900,000 Cost of goods sold 5,450,000 Gross profit 3,450,000 Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000 Net income $1,230,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Supplies $ 164,000 790,000 1,405,000 110,000 214,000 810, eee 1,075,000 85,00 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 $ 164,000 790,000 1,405,000 110,000 $ 214,000 810,000 1,075,000 85,000 1,150,000 (420,000) $3,199,000 1,150,000 (210,000) $3,124,000 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders equity $ 115,000 e 40,000 91,000 5,000 31,000 600,000 600,000 700,000 1,744,000 $3,199,000 700,000 1,697,000 $3,124,000 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 36 to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio times days times days to 1 to 1 % times

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

Fundamental Financial Accounting Concepts

Authors: Thomas P. Edmonds

11th Edition

1260786587, 9781260786583

More Books

Students also viewed these Accounting questions

Question

What is an event-driven program?

Answered: 1 week ago

Question

What are the skills of management ?

Answered: 1 week ago

Question

2. How do I perform this role?

Answered: 1 week ago