(a) Current ratio = Current assets / Current liabilities
For 2017:
Current assets = Cash + accounts receivable + inventory
Current assets = $14500 + $69000 + $60600 = $144100
Current liabilities = Accounts payable
Current liabilities = $50500
Now, putting these values in the current ratio formula, we get,
Current ratio = $144100 / $50500 = 2.85:1
b. Acid test ratio = Current assets – Inventories / Current liabilities
Current assets = $144100, Current liabilities = $50500, Inventories = $60600
Quick ratio = ($144100 - $60600) / $50500
Quick ratio = $83500 / $50500 = 1.65
c. Accounts receivable turnover ratio = Net credit Sales / Average accounts receivables
where, Average accounts receivables = Beginning accounts receivables + Ending receivables / 2
For 2017:
Beginning accounts receivables = Ending accounts receivable of previous year = $60100, Ending accounts receivables = $69000
Average accounts receivables = ($60100 + $69000) / 2 = $129100 / 2 = $64550
Credit sales = $409000
Net credit sales = Credit sales - Sales returns and allowances
Net credit sales = $409000 - $20700 = $388300
Putting the values in the accounts receivable turnover ratio formula, we get,
Accounts receivables turnover ratio = $388300 / $64550 = 6.02 times
d. Inventory turnover ratio = Cost of the goods sold / Average inventory
where, Average inventory = Beginning inventory + Ending inventory / 2
For 2017:
Ending inventory = $60600, Beginning inventory = Ending inventory of previous year = $50700
Average inventory = ($60600 + $50700) / 2 = $111300 / 2 = $55650
Cost of the goods sold = $197000
Putting these values in the inventory turnover ratio formula, we get,
Inventory turnover ratio = $197000 / $55650 = 3.54 times
Exercise 18-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December...
*Exercise 18-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016 Cash Accounts receivable (net) Inventory Plant assets (net) $ 15,800 $30,300 70,600 59,400 61,000 50,300 201,500 180,500 $348,900 $320,500 $50,300 $59,900 107,000 107,000 138,000 124,500 53,600 29,100 $348,900 $320,500 Accounts payable Mortgage payable (6%) Common stock, $10 par Retained earnings Additional information for 2017: 1. Net income was $24,500 Sales on account were $410.500. Sales returns and allowances were $19,200. 3....
Exercise 14-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016 Cash $15,100 29,700 Accounts receivable (net) 70,300 59,000 Inventory 60,900 49,300 Plant assets (net) 195,000 178,500 $341,300 $316,500 Accounts payable $50,600 $60,900 Mortgage payable (6%) Common stock, $10 par 101,500 101,500 144,000 118,500 Retained earnings 45,200 35,600 $341,300 $316,500 Additional information for 2017 Net income was $25,800. 1 Sales on account were $407,000. Sales returns and allowances were $20,700. 2. Cost...
Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 2019 Cash $ 15,000 $ 30,000 Accounts receivable (net) 71,000 60,000 Inventory 61,000 50,000 Plant assets (net) 197,000 175,000 View Policies $344,000 Accounts payable $50,000 $59,200 Mortgage payable (15%) 108,000 108,000 Common stock, $10 par 138,500 124,500 Retained earnings 47,500 23,300 $344,000 $315,000 Additional information for 2020: 1. Net income was $25,700. 2. Sales on account were $412,500. Sales returns and allowances amounted to $19,500....
Exercise 18-09 Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 2019 Cash $ 15,000 $30,000 Accounts receivable (net) 71,000 60,000 Inventory 60,000 50,000 Plant assets (net) 196,000 178,000 $342,000 $318,000 Accounts payable $50,000 $59,500 Mortgage payable (15%) 107,500 107,500 Common stock, $10 par 144,000 124,500 Retained earnings 40,500 26,500 $342,000 $318,000 Additional information for 2020: 1. 2. 3. 4. 5. Net income was $25,100. Sales on account were $407,350. Sales returns and allowances...
Blossom Company has these comparative balance sheet data: BLOSSOM COMPANY Balance Sheets December 31 2022 2021 Cash $ 21,630 $43,260 Accounts receivable (net) 100,940 86,520 Inventory 86,520 72,100 Plant assets (net) 288,400 259,560 $497,490 $461,440 $ 72,100 $ 86,520 Accounts payable Mortgage payable (15%) 144,200 144,200 Common stock, $10 par 201,880 173,040 Retained earnings 79,310 57,680 $497,490 $461,440 Additional information for 2022: 1. Net income was $32,400. 2. Sales on account were $376,500. Sales returns and allowances amounted to $26,700....
Sheridan Company has these comparative balance sheet data: SHERIDAN COMPANY Balance Sheets December 31 2022 2021 Cash $ 24,510 $ 49,020 Accounts receivable (net) 114,380 98,040 Inventory 98,040 81,700 Plant assets (net) 326,800 294,120 $563,730 $522,880 $81,700 $98,040 Accounts payable Mortgage payable (15%) 163,400 163,400 Common stock, $10 par Retained earnings 228,760 196,080 89,870 65,360 $563,730 $522,880 Additional information for 2022: Additional information for 2022: 1. Net income was $34,200. 2. Sales on account were $384,100. Sales returns and allowances...
Current Attempt in Progress Blossom Company has these comparative balance sheet data: BLOSSOM COMPANY Balance Sheets December 31 2022 2021 Cash Accounts receivable (net) Inventory Plant assets (net) $ 21,630 $43.260 100,940 86,520 86,520 72,100 288.400 259,560 $497.490 $461,440 $ 72,100 $86.520 144,200 144,200 201,880 173,040 Accounts payable Mortgage payable (15%) Common stock, $10 par Retained earnings 79,310 57680 57.00 $461.440 $497,490 Additional information for 2022: 1. Net income was $32,400. 2. Sales on account were $376,500. Sales returns and...
Blossom Company has these comparative balance sheet data: BLOSSOM COMPANY Balance Sheets December 31 2022 2021 Cash $21,630 $43,260 Accounts receivable (net) 100,940 86,520 Inventory 86,520 72,100 Plant assets (net) 288,400 259,560 $497,490 $461,440 Accounts payable $72,100 $86,520 Mortgage payable (15%) 144,200 144,200 PDF Common stock, $10 par 201,880 173,040 Retained earnings 79,310 57,680 $497,490 $461,440 Additional information for 2022: Net income was $32,400. 1. Sales on account were $376,500. Sales returns and allowances amounted to $26,700. 2. Cost of...
ctice Assignment Gradebook ORION Downloadable eTextbook ment Lundell Company has these comparative balance sheet data Lendell Company Balance Sheets December 31 2020 2019 Cash $ 14,000 $29,000 Accounts receivable (net) 71,000 59,000 Inventory 50,000 49,000 Plant assets (net) 202,000 177,000 $347,000 $314,000 Accounts payable $50,000 $59,300 Mortgage payable (15%) 109,500 109,500 Common stock, $10 par 138,500 125,000 Retained earnings 49,000 20,200 $347,000 $314,000 Additional information for 2020: 1. Net Income was $24.400 2. Sales on account were $416,400. Sales retums...
View Policies Current Attempt in Progress Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 Cash $15.000 Accounts receivable (net) 70,000 Inventory 61,000 Plant assets (net) 195,000 $341,000 Accounts payable $50,000 Mortgage payable (15%) 101,500 Common stock, $10 par 144,000 Retained earnings 45.500 5341,000 2019 $ 30,000 59.000 49.000 179.000 $317.000 $60.900 101.500 118.500 36.100 $317.000 Additional information for 2020: 1 2 3. - 5. Net income was $25.800. Sales on account were $407,700....