1) | |||||||||
Average Account Receivables = (beginning Account Receivables + ending Account Receivables)/2 | |||||||||
= ( $7600+9200)/2 | |||||||||
= $ 8400 | |||||||||
Account Receivables Turnover Ratio = Sales / average Account Receivables | |||||||||
= $74760/8400 | |||||||||
=8.9 times | |||||||||
2) | Average Collection Period = 365/ Account Receivables turnover ratio | ||||||||
= 365 days /8.9 | |||||||||
=41.01 days | |||||||||
3) | Average Inventory = (beginning inventory + ending inventory)/2 | ||||||||
= ( $10700+12300)/2 | |||||||||
= $ 11500 | |||||||||
Inventory Turnover Ratio = Cost of goods sold / average inventory | |||||||||
= $42550/11500 | |||||||||
=3.7 times | |||||||||
4) | Average Sales Period = 365/ inventory turnover ratio | ||||||||
= 365 days /3.7 | |||||||||
=98.65 days | |||||||||
5) | Operating Cycle = Average Collection period + average sales period | ||||||||
=41.01+98.65 | |||||||||
139.66 | days | ||||||||
6) | Average Assets = (beginning Assets + ending Assets)/2 | ||||||||
= ( $71698+81942)/2 | |||||||||
= $ 76820 | |||||||||
Assets Turnover Ratio = Sales / average Assets | |||||||||
= $74760/76820 | |||||||||
=0.97 times | |||||||||
Kindly give a positive rating if you are satisfied with this solution and please ask if you have any queries. |
Exercise 14-3 Financial Ratios for Asset Management (LO14-3] Comparative financial statements for Weller Corporation, a merchandising...
Exercise 14-2 Financial Ratios for Assessing Liquidity (LO14-2] Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 500,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market...
Exercise 14-6 Financial Ratios for Assessing Market Performance [LO14-6] Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 810,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the...