Question

I just want to know if my answer is correct, and how to get the answer. Thanks.

For the Balk Corp. in 2018:
Balance Sheet ($000s): Dec 31, 2018 | Dec 31, 2017 | Average
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Cash: 420,000 | 120,000 | 270,000
Accounts receivable, net: 492,000 | 300,000 | 396,000
Inventories: 412,000 | 340,000 | 376,000
Plant and equipment, net: 1,700,000 | 1,112,000 | 1,406,000
Accumulated Depreciation: (184,000) | (192,000) | (188,000)
Total Assets: 2,840,000 | 1,680,000 | 2,260,000
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Accounts payable: 240,000 | 160,000 | 200,000
Dividends Payable: | 40,000 | 20,000
Short-Term Debt: 100,000 | | 50,000
Long-Term Debt: 300,000 | | 150,000
Common stock ($1.00 par): 120,000 | 80,000 | 100,000
Additional paid in capital: 1,540,000 | 1,120,000 | 1,330,000
Retained Earnings: 540,000 | 280,000 | 410,000
Treasury Stock, (2000, 1600 shares): | |
Total Liabilities and Equities: 2,840,000 | 1,680,000 |
  
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Income Statement Year Ended: Dec 31, 2018
Net sales: 2,400,000
Cost of goods sold: 1,600,000
Gross profit: 800,000
Selling and General Expenses: 500,000
Operating income: 300,000
Earnings from affiliates:
Interest expense: 10,000
Earnings before Taxes: 290,000
Income tax expense: 87,000
Net income: 203,000
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Market value of the stock on Dec 31, 2018 is $80 per share Balk Corp. sold 40000 shares of common stock on Jan 1, 2018

- C. Current ratio at Dec 31, 2018       - B.    Acid test ratio Dec 31, 2018       - A. Receivables Turnover in 2018       - D.    Inventory Turnover in 2018

A. 2400000 ÷ 396000 B. 912000 ÷ 340000 C. 1324000 ÷ 340000 D. 1600000 ÷ 376000

Answer 1