![C2 - Selected information for Smith Company are presented below. (SK3, AR2: 10 marks] Cash Short-term investments Net receiva](http://img.homeworklib.com/questions/21338130-72de-11ea-aa77-9f93566e89dc.png?x-oss-process=image/resize,w_560)
Homework Answers
a.
Current assets = Cash + Short term investment + Net receivables + Inventories
= 100,000 + 50,000 + 250,000 + 200,000
= $600,000
Current ratio = Current assets/ Current liabilities
= 600,000/250,000
= 2.4
b.
Acid test ratio = (Cash + Short term investment + Net receivables)/Total current liabilities
= (100,000 + 50,000 + 250,000)/250,000
= 400,000/250,000
= 1.6
c.
Average receivables = (Beginning receivables + Ending receivables)/2
= (225,000 + 250,000)/2
= 475,000/2
= $237,500
Accounts receivables turnover ratio = Net sales/Average receivable
= 2,500,000/237,500
= 10.53
d.
Profit margin = Net income/Net sales
= 850,000/2,500,000
= 34%
e.
Average inventory = (Beginning inventory + Ending inventory)/2
= (150,000 + 200,000)/2
= 350,000/2
= $175,000
Inventory turnover ratio = Cost of goods sold/Average inventory
= 2,000,000/175,000
= 11.43
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C2 - Selected information for Smith Company are presented below. (SK3, AR2: 10 marks] Cash Short-term...
C2-Selected information for Smith Company are presented below. (SK3, AR2: 10 marks) Cash Short-term investments Net...
C2-Selected information for Smith Company are presented below. (SK3, AR2: 10 marks) Cash Short-term investments Net receivables Inventories Total current liabilities December 31, 2019 100,000 50,000 250,000 200,000 250,000 December 31, 2018 $74,400 45,000 225,000 150,000 225,000 During 2019, net sales were $2,500,000, cost of goods sold was $2,000,000, and net income was $850,000. Required: Compute the following ratios for Smith Company at December 31, 2019: a. Current b. Acid-test. c. Accounts receivable turnover. d. Profit margin. e. Inventory turnover.
C2 - Selected information for Smith Company are presented below. [SK3, AR2: 10 marks] December 31,...
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Required:
a. Using the financial statements, compute the following ratios
for Flowers Co. for 2019. Show all computations.
(4
marks)
1. Current
ratio.
2. Acid-test ratio.
3. Accounts receivable
turnover.
4. Inventory turnover.
5. Profit
margin.
6. Return on assets.
7. Assets
turnover.
8. Times interest earned.
9. Working capital.
10. Debt to assets ratio.
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C2 - Selected information for Smith Company are presented below. [SK3, AR2: 10 marks] December 31, 2019 December 31, 2018 Cash 100,000 50,000 250,000 200,000 250,000 $74,400 45,000 225,000 150,000 225,000 Short-term investments Net receivables Inventories Total current liabilities During 2019, net sales were $2,500,000, cost of goods sold was $2,000,000, and net income was $850,000. Required: Compute the following ratios for Smith Company at December 31, 2019: a. Current. b. Acid-test. c. Accounts receivable turnover. d. Profit margin. e....
2. Carver Inc Presented below is information related to CARVER INC. BALANCE SHEET DECEMBER 31,2004 S 45,000 Notes payable (short-term) 50,000Ae Receivables S110,000 Accounts payable unpeit Less: Allowance 1.000 000Aceruad sabin 32.000 | ^^ 5,000 260,000 141,000 170,000 Capital stock (par $5 Prepaid insurance Land Equipment (net) Retained earnings 8,000 20,000 150,000 $488,000 $488,000 INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2004 S1,400,000 Sales Cost of goods sold Inventory, Jan. 1, 2004 $200,000 Purchases Cost of goods available for...
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Required:
a. Using the financial statements, compute the following ratios
for Flowers Co. for 2019. Show all computations.
(4
marks)
1. Current
ratio.
2. Acid-test ratio.
3. Accounts receivable
turnover.
4. Inventory turnover.
5. Profit
margin.
6. Return on assets.
7. Assets
turnover.
8. Times interest earned.
9. Working capital.
10. Debt to assets ratio.
The financial statements of Flowers Co. appear below: Flowers Co. Comparative Balance Sheets December 31, 2018 - 2019 Assets Caela Short-term investments Accounts receivable...
Question CAR2: 8 Marks The financial statements of Star Corporation appear below: Star Corporation Comparative Balance Sheets December 31, 2018 - 19 Assets 2019 2018 Cash Short-term investments Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets S 50,000 50,000 100,000 150,000 650.000 $1.000.000 $ 100,000 150,000 75,000 175,000 750,000 $1.250,000 Liabilities and stockholders' equity Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 50,000 100,000 200,000 375,000 275.000 $1.000.000...
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