2008 2009 CURRENT ASSETS: Cash Marketable Securities Accounts Receivable Notes R
ID: 2589972 • Letter: 2
Question
2008 2009 CURRENT ASSETS: Cash Marketable Securities Accounts Receivable Notes Receivable Inventories Total Current Assets $26,950.00 $85,400.00 $34,000.00 $44,000.00 S 62,400.00 $252,750.00 S 31,500.00 S60,500.00 S45,600.00 S57,450.00 S 58.900.00 $253,950.00 FIXED ASSETS $ 1,086,450.00 S 1,188,300.00 TOTAL ASSETS S 1,339,200.00 S 1,442,250.00 CURRENT LIABILITIES: LONG TERM LIABIILTIES: S107,700.00 S 681.500.00 S789,200.00 S 78,250.00 S 644,000.00 S722,250.00 OWNERS EQUITY: S550,000.00 S720,000.00 S 1,339 200.00 1442250.00 TOTAL LIABILITIES &EQUITY; ADDITIONAL INFORMATION Cost of Goods Sold Total Revenue 2008 2009 S212,275.00 $883,560 Using Above Information, Figure The Following Ratios For 2009 a. CURRENT RATIO: b. QUICK RATIO: c. ACCT RECEIVABLE TURNOVER: d. AVERAGE COLLECTION PERIOD: e. WORKING CAPITAL f. WORKING CAPITAL TURNOVER: g. INVENTORY TURNOVER:Explanation / Answer
883560/39800* = 22.2
*(34000+45600)/2=39800
883560/160375* = 5.51
*(145050**+175700)/2=160375
**252750-107700=145050
212275/60650* = 3.5
*(62400+58900)/2=60650
S.No Ratio Formula Ratio a Current ratio = Current Asset/Current Liablities 253950/78250 = 3.25 times b Quick ratio = Total Current Asset-Inventroy-Prepaid Expense/Current Liabalities (253950-0-58900)/78250 = 2.49 c Account Receivable Turnover Ratio=Net Credit Sales/Average Accounts Receivable883560/39800* = 22.2
*(34000+45600)/2=39800
d average collection period=365/Account Receivable Turnover Ratio 365/22.2 = 16.44 days e Working Capital = Current Asset-Current Liablities 253950-78250 = 175700 f Working Capital Turnover Ratio=Revenue/Average Working Capital883560/160375* = 5.51
*(145050**+175700)/2=160375
**252750-107700=145050
g Inventory turnover= Cost of Goods Sold/Average Inventory212275/60650* = 3.5
*(62400+58900)/2=60650
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