Question

Saved Help HW Save & E Che The 2021 income statement of Anderson Medical Supply Company reported net sales of $8 million, cost of goods sold of $5.1 million, and net income of $815,000. The following table shows the company's comparative balance sheets for 2021 and 2020: (5 in thousands) 2021 2020 $ 360 760 1,050 2,700 $ 4,870 $ 440 530 850 2,420 $ 4,240 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Connon stock Retained earnings Total liabilities and shareholders' equity $1,020 1,350 1,300 1,200 $ 4,870 $ 890 1,350 1,300 700 $ 4,240 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.)

Answer 1

Page! Solution: 1. Inventory Turnover Ratis Goods Sold Aneralge Inventory Cast of Inventory Traneaner Ratis $ 51 00,000 (($850,000+$10 50000)/2) $5100,000 $950,000 Inventory Turnover Ratis = 15.37 times 2. Receinables Turnover Ratis Receivables Turnover fatis Net Sales Average Accounts Receivable $ 8000,000 (C$530,000+$760,000)/2) $ 8000,000 $645,000 Receivables Turneuer Ratis 12.40 times

3. Average Collection Period Page 2 365days Accounts Peceivable Turnover Ratis Average Collection Period 365 days z 29.44 days 12.40 times Average Collection Period ů, Asset Turnover Ratio Met Sales Asset Turnover Patis Average Total Assets $ 80 00,000 (C$4240,000+$4870000)/2) $8,000 poo $45 55,000 Asset Turnover Rates 11.76 times

Summary of Answers Page 3 5.37 times 12,40 times Innantay turnover ratis Receinables turnover Katis Average collection period Asset turnover ratis 28.44 days 1.26 times