Question

Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,900 Cost of goods sold (6,525) Gross profit 3,375 Operating expenses (2,325) Interest expense (290) Income tax expense (384) Net income $ 456 Comparative Balance Sheets Dec. 31 2021 2020 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 690 690 890 2,900 $5,170 $ 590 490 690 3,000 $4,770 Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained earnings $1,640 1,850 690 990 $5,170 $1,390 1,85e 690 84e $4,770 Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round answers to 2 decimal places.)

Answer 1

Inventory Tonerer Ratio - Cost of Gread Sold Average Sovertoriy 6525 790 = 8.26 time Fromage Loys & Inventory - Says in a year Inventory Tomore Rate 365 = 12:19 8.26 receivables Tonovo Patis = Average Paceivables 4900 1698 timer 590 Average Collection brood - Says in a lear Receivable Tumors Rate 365 = 21.75 days 16.78 Assets Turnove Ratio - Sales Average Assets 4900 4970 Net Income on Sales Saler 458/4900 Terom on Issets a = 16+ Sncome Average Assets - 4.61% 4970

hatom an Equity - Net Income Average Equity = 456 = 28.414 1605 Equity Meeltiplier - Average Arad Avalage Equity 4970 1605 3. 10 times Fetirimi on Eauüity = hooft Paupio X Asset Tuberoves X Equity multipleto = 20:41 = 4.61 X 199 X3.10
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