Question

3. With reference to the 4C Company’s unadjusted trial balance, balance sheet, and income statement for the year ending December 31, 20x7 that your group prepared I #1, calculate each of the following. (This is the first year of 4C Company’s operation. When averages are called for but only beginning numbers are available, use the ending numbers shown in the financial statements).

   1. Working capital

   2. Current Ratio

   3. Quick Ratio

   4. Credit card receivable average collection period (Credit card sales revenue is 60% of

      total sales revenue.)

   5. Accounts receivable average collection period (accounts receivable is 10% of total

      sales revenue.)

   6. Net Return on assets

   7. Net income to total sales revenue ratio

   8. Return on stockholders’ equity

   9. Food inventory turnover ratio

   10. Beverage inventory turnover ratio

"4C Company Unadjusted Trial Balance December 31, 2007"
Accounts	Debit	Credit
Cash	$36,218
Credit card receivbles	13,683
Accounts Receivables	3,421
Inventories, Food	6,128
Inventories, Beverages	3,207
PrePaid insurance	2,136
Equipment	171,524
Furnishings	53,596
Accounts Payable		8,819
Bank Loan Payable		163,518
Common Stock		50,000
Sales Revenue, Food Operartions		458,602
Sales Revenue, Beverage Operartions		180,509
Purchases, food (net)	181,110
Purchases, Bevarages (net)	38,307
Salaies and wages expense	221,328
Laundry expense	16,609
Kitchen Fuel Expense	7,007
China and Tableware Expense	12,214
Glassware expense	1,605
Contract cleaning Expense	5,906
Lisenseces Expense	3,205
Misc. operating expense	4,101
Administravtive- general expenses	15,432
Marketing expenses	6,917
Utilities expenives	7,918
Insurance Expense	1,895
Rental Expense	24,000
Interest Expense	23,981
Unadjusted Trial Balance Totals	861,448	861,448

Answer 1

$36,218 $ 3,421 9,120 $3,207 12,136 credit card receivelului 113,663 credit card receivaulu average cellection Average credit card reccivaliler Current Ratio current Accet curent liabilitica. computation of current-tesets: cach Acercents Receivauter aoventtries, food Snventories, Beverages Prepaid Insurance Total acrrent aucto $44,773 computation of clerrent vanilities: Accounts payalule $8,819 cerrent ratio aurrent aketo Current halui titici $ 60, 793 $8,819 1.35. Quick Ratio ceurent-Arieto current valities $64, 793- $6,128 - $3207 $9819 $55,458 $8819 6.29 working capital current Arreb - current Walulitis 64,793 - $8819 $55,974. credit lacu * 365 days Inventory periods 1/1 =

$13,66 (#454602 + +180909 60%. *days * 1.4214215 #ca nu* bo'lsa 44,79435 $389,466,6 pro 13 days; Accocents teceivable average collection period Average Accounts Receivalcetion periode X 365 days credir sales $ 3421 L x 365 Days $639,111 X 801 $342) w 365 days, x $63,91.1 - 19.5 days Net Return on arscto Net Incomic Total Acrets computation of Net Income i Particulars -Amount ($) salu perence, food opuations 45 8,602 sales Revenue, Beverages operations 1 80,504 Total salu Revenues 639, w cost of goodi sold: (IBCLLO) purchases Beveragu) ( 36301) Gross poft 419,694 o operating expeniss Salaries and waqes #921328 Laundry expenses kitchen tuul expenses $1001 purchaic (food) $16,609 2/2 C a =

Rental expense (352118) $67,576 Misc operating erpense china & tableware expense $12214 Glauware expense $1605 cleaning openice 1 $5906 Asencel expense $3205 $4101 Administrative expense sur $15432 Marketing expenses $0914 utilities expenses $1918 Incurance expense $ 1895 *24000 Interest expense $23901 Net Income Net Return on total assets Net Income Current Anett Non current assets $ 47,516 x 10D $64 +93 + $141524 + $53596 $61,516 X100 $289,913 0.2331 x 100 = 23.31% Net Income to total sales revenue ratios Net Income - X100 total salu $ 61,576 $6391 = 10.57% Return or stock holders' equity x 100 earnings aftur tax cod Net Income Stockholder' equiły KLOD $67576 KLOD $50000 1.35 x 100 = 135"). 3/3 C =

food Inventory turn tver ratio : Cost of goods sold Average Inventtry Crood) $181110 - $6128 $6128 = 29.55 Beverage Inventory Turnover Ratio = cost of goods sold Average Joventory (Beverages $38 301 $3201 $3207 10,95 =