First 5 ratios are being calculated here:
1. Inventory turnover ratio = Cost of the goods sold / Average inventory
where, Average inventory = Beginning inventory + Ending inventory / 2
For 2021:
Ending inventory = $820, Beginning inventory = Ending inventory of previous year = $620
Average inventory = ($820 + $620) / 2 = $1440 / 2 = $720
Cost of the goods sold = $6350
Putting these values in the inventory turnover ratio formula, we get,
Inventory turnover ratio = $6350 / $720 = 8.82
2. Average days in inventory = 365 / Inventory turnover ratio
Inventory turnover ratio = 8.82 times ( as computed in point (1) above)
Putting these values in average days in inventory ratio formula, we get,
Average days in inventory = 365 / 8.82 = 41.38 days
3. Receivables turnover ratio = Sales / Average accounts receivables
where, Average accounts receivables = Beginning accounts receivables + Ending receivables / 2
For 2021:
Beginning accounts receivables = $420, Ending accounts receivables = $620
Average accounts receivables = ($420 + $620) / 2 = $1040 / 2 = $520
Sales = $9200
Putting these values in the receivables turnover ratio formula, we get,
Accounts receivables turnover ratio = $9200 / $520 = 17.69
4. Average collection period = 365 / Accounts receivable turnover ratio
For 2021:
Accounts receivable turnover ratio = 17.69 times ( as computed in point (3) above)
Putting these values in the Average collection period formula, we get,
Average collection period = 365 / 17.69 = 20.63 days
5. Total assets turnover ratio = Net Sales / Average total assets * 100
where, Average total assets = Beginning assets (2020) + Ending assets (2021) / 2
So, Average assets = ($3860 + $4260) / 2 = $8120 / 2 = $4060
Net sales = $9200
Now, putting these values in the above formula, we get,
Total assets turnover ratio = $9200 / $4060 * 100 = 2.27
Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net...
Financial statements for Askew Industries for 2021 are shown below in thousands 2021 Income Statement Net sales $ 8,700 Cost of goods sold (6,075) Gross profit 2,625 Operating expenses (1,875) Interest expense (110) Income tax expense (256) Net income 384 Comparative Balance Sheets Dec. 31 2021 2020 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 510 510 710 1,100 $2,830 $ 410 310 510 1,200 $2,430 Liabilities and Shareholders' Equity Current liabilities Bonds payable Common stock Retained...
Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,500 Cost of goods sold (6,425 ) Gross profit 3,075 Operating expenses (2,225 ) Interest expense (250 ) Income tax expense (240 ) Net income $ 360 Comparative Balance Sheets Dec. 31 2021 2020 Assets Cash $ 650 $ 550 Accounts receivable 650 450 Inventory 850 650 Property, plant, and equipment (net) 2,500 2,600 $ 4,650 $ 4,250 Liabilities and Shareholders’ Equity...
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...
Financial statements for Askew Industries for 2021 are shown below in thousands): • 4-12 Calculating ctivity and ofitability ratios L04-10 2021 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income $9.000 (6,300) 2,700 (2,100) (200) (100) $ 300 Comparative Balance Sheets Dec. 31 2021 2020 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 600 600 800 2,000 $4,000 $ 500 400 600 2,100 $3,600 Liabilities and Shareholders'...
please complete and show work with formulas Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 8,800 Cost of goods sold (6,250) Gross profit 2,550 Operating expenses (2,050) Interest expense (180) Income tax expense (128) Net income $ 192 Comparative Balance Sheets Dec. 31 2021 2020 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 580 580 780 1,800 $3,740 $ 480 380 580 1,900 $3,340 Liabilities and Shareholders'...
Financial statements for Askew Industries for 2021 are shown below in thousands): - 4-12 Calculating ctivity and ofitability ratios L04-10 2021 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net Income $9,000 (6,300) 2.700 (2,100) (200) (100) $ 300 Comparative Balance Sheets Dec. 31 2021 2020 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 600 600 800 2,000 $4,000 $ 500 400 600 2,100 $3,600 Liabilities and Shareholders'...
quired: Prepare Santana Industries 2021 statement of cash flows, using the indirect method to present cash flows operating activities. Use a format similar to the one in the Concept Review Exercise at the end of Part Bo chapter. B of this Financial statements for Askew Industries for 2021 are shown below (in thousands): tios 2021 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income $9,000 (6,300) 2,700 (2.100) (200) (100)...
Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) days days 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio 4. Average collection period 5. Asset turnover ratio 6. Profit margin on sales 7. Return on assets 8. Return on equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) % % % times % Financial statements...
The 2021 income statement of Anderson Medical Supply Company reported net sales of $10 million, cost of goods sold of $6.0 million, and net income of $860,000. The following table shows the company's comparative balance sheets for 2021 and 2020: ($ in thousands) 2021 2020 Assets Cash $ 540 $ 620 Accounts receivable 940 620 Inventory 1,500 910 Property, plant, and equipment (net) 3,600 3,320 Total assets $6,580 $5,470 Liabilities and shareholders' equity Current liabilities $1,280 $1,070 Bonds payable 1,800...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income...