Solved

Selected Balances from a Company's Financial Statements Are Shown Below

Question 146

Essay

Selected balances from a company's financial statements are shown below:
 Dec. 31,  Dec. 31,  For the 20102011 Year 2011  Merchandise inventory $15,000$20,000 Accounts payable 32,00026,000 Salaries payable 4,4003,000 Accounts receivable 24,00021,000 Total assets 234,000286,000 Sales (all on credit) $312,000 Cost of goods sold 165,600 Salaries expense 48,000 Other expenses 75,000 Net income 24,000\begin{array}{|l|r|r|r|}\hline&\text { Dec. 31, } &\text { Dec. 31, }& \text { For the }\\&2010&2011&\text { Year 2011 }\\\hline \text { Merchandise inventory } & \$ 15,000 & \$ 20,000 \\\hline \text { Accounts payable } & 32,000 & 26,000 \\\hline \text { Salaries payable } & 4,400 & 3,000 \\\hline \text { Accounts receivable } & 24,000 & 21,000 \\\hline \text { Total assets } & 234,000 & 286,000 \\\hline \text { Sales (all on credit) } & & & \$ 312,000 \\\hline \text { Cost of goods sold } & & & 165,600 \\\hline \text { Salaries expense } & & & 48,000 \\\hline \text { Other expenses } & & & 75,000 \\\hline \text { Net income } & & & 24,000\\\hline\end{array}

Use the information above to calculate the following current year ratios:
(a)2011 Inventory turnover.
(b)Days' sales uncollected at Dec.31,2011.
(c)2011 Profit margin.
(d)2011 Return on total assets.

Correct Answer:

verifed

Verified

(a)Inventory turnover = $165,600/[($15,0...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents