Question

ACC 112 Project 1B The below represents the comparative financial statements of Kamla Corporation. Kamla Corporation Comparative Income Statement For the Years Ended December 31,2016 and 2015 2016 2015 Net sales (all on account) $1,238,000 $1,006,000 Expenses: Cost of goods sold $826,000 $706,000 Selling and administrative 208,000 218,000 Interest expense 14,000 12,000 Income tax expense 35,000 23,000 Total expenses $1,083,000 $959,000 Net income $155,000 $47,000 Kamla Corporation Comparative Balance Sheet December 31, 2016 and 2015 Assets 2016 2015 Current assets: Cash $38,000 $37,700 Notes receivable 36,000 28,200 Accounts receivable (net) 171,600 149,600 Inventory 182,000 135,400 Total current assets 427,600 350,900 Property, plant, and equipment (net) 850,000 778,000 Total assets $1,277,600 $1,128,900 Liabilities and Stockholders' Equity

Answer 1

Kindly note that as per policy, we can answer first four questions. Please raise the other questions separately.

Solution si Current Ratio - Current Assets Current liabilities Current Current Assel] = $427,600 Gabilities - $ 287,660 E| CIR = 427600 1.49.5. Fle 1857 | Dis? 287600...15. So r os ;) Canon 5 D Current liabilitate use all This means that for every dollar of the 1 company need to pay, it has $ 1.49 asiek to utilize . Current Acid tost Ratio (Current d . Current Asset Inventory liabilities (427600 - 182000) 287,600 K - 0.85 oit 53 Tom.151 I the I very for every dollar of Current liabilities col need to pay, it has $0.85 of quick assets to utilize.

Accounts a h Receiveible Purnonen Ratio ... a Net Credit Salen - Average Ale Rec. Net Augi Credit Alc Sale = $ 1,238,000 Receivable Al Rec of: 2015 t. Ale Rec. of 2016) 130 (171600 + 149600) = $160,600 Alc Rec Plo Ratio i = 7.71 1238000 160,6080 This meant; ' The company an average ¿ DE nel 37 collects its average account receivable at times a year period. of

Turnover = . Cost of Goods.fold Avere un COGS = $826,000 1 Aug. Inventory - (Op. Inventory cl. Inventory P o (135400 + 182000) 12 :8158,700 II :. Inventory Tlo Ratio = 826,000 = 5.2 This means, The sold inventory an company of 5.2 its times overage ay average