Question
type here so i can copy please, thank you Problem- 3 Selected information from the comparative financial statements of Fava Company for the year ended
type here so i can copy please, thank you
Problem- 3
Selected information from the comparative financial statements of Fava Company for the year ended December 31, appears below:
2017 2016
Accounts receivable (net) $ 180,000 $200,000
Inventory 140,000 160,000
Total assets 1,200,000 800,000
Current liabilities 140,000 110,000
Long-term debt 400,000 300,000
Net credit sales 1,330,000 700,000
Cost of goods sold 900,000 530,000
Interest expense 50,000 25,000
Income tax expense 60,000 29,000
Net income 150,000 85,000
Instructions
Answer the following questions relating to the year ended December 31, 2017. Show computations.
1. Inventory turnover for 2017 is __________.
2. Times interest earned in 2017 is __________.
3. The debt to assets ratio for 2017 is __________.
4. Accounts receivable turnover for 2017 is __________.
5. Return on assets for 2017 is __________.
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