Solved

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

Question 210

Essay

Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2018:
(a) accounts receivable turnover
(b) inventory turnover
(c) days' sales uncollected
(d) days' sales in inventory
(d) profit margin.
(e) return on total assets.
 Dec. 31,  Dec. 31,  For the 20182017 Year 2018 Accounts receivable $27,000$24,000 Merchandise inventory 25,00020,000 Total assets 296,000244,000 Accounts payable 26,00032,000 Salaries payable 3,0004,400 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 | l | l | l | } \hline & \text { Dec. 31, } & \text { Dec. 31, } & \text { For the } \\\hline & 2018 & 2017 & \text { Year } 2018 \\\hline \text { Accounts receivable } & \$ 27,000 & \$ 24,000 & \\\hline \text { Merchandise inventory } & 25,000 & 20,000 & \\\hline \text { Total assets } & 296,000 & 244,000 & \\\hline \text { Accounts payable } & 26,000 & 32,000 & \\\hline \text { Salaries payable } & 3,000 & 4,400 & \\\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}

Correct Answer:

verifed

Verified

None...

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