Question
Use the financial data shown below to calculate the following ratios for the current year. Round your answers to one decimal if needed. a) Current
Use the financial data shown below to calculate the following ratios for the current year. Round your answers to one decimal if needed.
a) Current ratio
b) Acid-test ratio
c) Accounts receivable turnover
d) Days sales uncollected
e) Inventory turnover
f) Days sales in inventory
g) What percent of their assets are current?
| Income Statement data |
|
| Sales (all on credit) | $650,000 |
| Cost of goods sold | 425,000 |
| Income before taxes | 78,000 |
| Net income | 54,600 |
|
| Ending Balances | Beginning Balances |
| Cash | $19,500 | $15,000 |
| Accounts receivable (net) | 65,000 | 60,000 |
| Inventory | 71,500 | 64,500 |
| Plant and equipment (net) | 195,000 | 183,900 |
| Total assets | $351,000 | $323,400 |
| Current liabilities | $62,400 | $52,700 |
| Long-term notes payable | 97,500 | 100,000 |
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
12th edition
978-0131495388
