Question

The following financial information is for Priscoll Company. Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 84,700 Debt investments (short-term) 66,550 Accounts receivable 125,840 Inventory 278,300 Prepaid expenses 30,250 Land 157,300 Building and equipment (net) 314,600 Total assets $1,057,540 Liabilities and Stockholders' Equity Notes payable (short-term) $205,700 Accounts payable 78,650 Accrued liabilities 48,400 Bonds payable, due 2023 302,500 Common stock, $10 par 242,000 Retained earnings 180,290 Total liabilities and stockholders' equity $1,057,540 2019 $78,650 48,400 108,900 199,650 27,830 157,300 223,850 $844,580 $145,200 62,920 48,400 205,700 242,000 140,360 $844,580

Answer 1

Based on the information available in the question, we can answer as follows:-

a.)

Current Ratio = Current Assets/Current Liabilities
Particulars	2019	2020
Cash	78,650	84,700
Debt Investments	48,400	66,550
Accounts Receivable	108,900	125,840
Inventory	199,650	278,300
Prepaid expenses	27,830	30,250
Current Assets	4,63,430	585,640
Notes Payable (short term)	145,200	205,700
Accounts Payable	62,920	78,650
Accrued Liabilities	48,400	48,400
Current Liabilities	256,520	332,750
Current Ratio	1.81 times	1.76 times

b.)

Accounts Receivable Turnover = Sales/Average accounts receivable
Particulars	2019	2020
Opening Accounts Receivable	104,060	108,900
Closing Accounts Receivable	108,900	125,840
Average Accounts Receivable	106,480	117,370
Sales	955,900	1,067,220
Accounts receivable turnover	8.98 times	9.09 times

c.)

Inventory Turnover = Cost of Goods sold/Average stock
Particulars	2019	2020
Cost of Goods sold	695,750	774,400
Opening Inventory	139,150	199,650
Closing Inventory	199,650	278,300
Average Inventory	169,400	238,975
Inventory Turnover	4.11 times	3.24 times

Requirement 4:-

Profit Margin = Net Profit/Sales * 100
Particulars	2019	2020
Net Income	58,080	62,920
Sales	955,900	1,067,220
Profit Margin	6.08%	5.90%

Kindly note that we are supposed to answer a minimum of 4 questions, when there are multiple subsections within the same question that has been posted per the HOMEWORKLIB RULESs. Accordingly, i have answered the first 4 questions. Request you to post the remaining questions separately so that we can answer them as well. All the best and please let me know if you have any questions via comments :)