The balance sheet at December 31, 2017 for Zumba Company follows:
in thousands of dollars, unless otherwise specified
Additional information follows:
1. Net income for the year ended December 31, 2017 is $2,020.
2. Cost of goods sold for the year ended December 31, 2017 is $4,400.
3. Inventory on January 1, 2017 is $1,800.
4. Accounts Receivable, net on January 1, 2017 are $4,400.
5. Total assets on January 1, 2017 are $20,000.
6. Net credit sales for the year ended December 31, 2017 are $14,600.
7. Net income before interest and taxes for the year ended December 31, 2017 is $4,800.
8. Interest expense for the year ended December 31, 2017 is $550.
9. Total stockholders' equity on January 1, 2017 is $3,500.
Compute the following ratios:
1. Current ratio
2. Quick ratio
3. Accounts receivable turnover
4. Days' inventory outstanding
5. Times interest earned
6. Return on assets
7. Return on equity

Question

The balance sheet at December 31, 2017 for Zumba Company follows:
in thousands of dollars, unless otherwise specified
  Additional information follows:
1. Net income for the year ended December 31, 2017 is $2,020.
2. Cost of goods sold for the year ended December 31, 2017 is $4,400.
3. Inventory on January 1, 2017 is $1,800.
4. Accounts Receivable, net on January 1, 2017 are $4,400.
5. Total assets on January 1, 2017 are $20,000.
6. Net credit sales for the year ended December 31, 2017 are $14,600.
7. Net income before interest and taxes for the year ended December 31, 2017 is $4,800.
8. Interest expense for the year ended December 31, 2017 is $550.
9. Total stockholders' equity on January 1, 2017 is $3,500.
Compute the following ratios:
1. Current ratio
2. Quick ratio
3. Accounts receivable turnover
4. Days' inventory outstanding
5. Times interest earned
6. Return on assets
7. Return on equity

Quizplus · Accepted Answer

The Answer of The balance sheet at December 31, 2017 for Zumba Company follows:
in thousands of dollars, unless otherwise specified
  Additional information follows:
1. Net income for the year ended December 31, 2017 is $2,020.
2. Cost of goods sold for the year ended December 31, 2017 is $4,400.
3. Inventory on January 1, 2017 is $1,800.
4. Accounts Receivable, net on January 1, 2017 are $4,400.
5. Total assets on January 1, 2017 are $20,000.
6. Net credit sales for the year ended December 31, 2017 are $14,600.
7. Net income before interest and taxes for the year ended December 31, 2017 is $4,800.
8. Interest expense for the year ended December 31, 2017 is $550.
9. Total stockholders' equity on January 1, 2017 is $3,500.
Compute the following ratios:
1. Current ratio
2. Quick ratio
3. Accounts receivable turnover
4. Days' inventory outstanding
5. Times interest earned
6. Return on assets
7. Return on equity

The Balance Sheet at December 31, 2017 for Zumba Company