The condensed financial statements of Sunland Company for the years 2016 SUNLAND

Question

The condensed financial statements of Sunland Company for the years 2016 SUNLAND COMPANY Balance Sheets December 31 (in thousands) 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses $330 $360 570 500 600 530 160 130 1,630 1,550 410 380 110110 510 $2,680 $2,550 $920 $890 620 520 1,1401,140 Total liabilities and stockholders' equity $2,680 $2,550 Total current assets Property, plant, and equipment (net) Investments Intangibles and other assets 530 Total assets Current liabilities Long-term liabilities Stockholders' equity-common SUNLAND COMPANY Income Statements For the Year Ended December 31 (in thousands) 20172016 eerpolie? ?2000-2018John Wiley,asons.Inca All Rights Reserved. A Division of lonnwile ?

Explanation / Answer

2017 2016

(a) Current ratio

=Current assets/Current liabilities =1630/920 =1550/890

=1.772:1 =1.743:1

(b) Inventory Turnover

=Turnover/Avg.Inventory

Avg.Inventory= = 600+530/2 =450+530/2

=565 =490

As income statement is not available,sales and profit margin cannot be calculated.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.