Question

Consider the following companys balance sheet and income statement. Balance Sheet Liabilities and Equity Assets Cash Account

a. Current ratio b. Number of days sales in receivables c. Sales to total assets d. INumber of davs in inventory e. Debt-to-

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Answer #1

a

Current ratio = current assets/current liablities
Current ratio = 127000/58000
Current ratio = 2.19

b

Receivables turnover = Credit sales/receivables
Receivables turnover = 300000/67000
Receivables turnover = 4.48
days of sales outstanding = number of days in a year/receivables turnover
days of sales outstanding = 365/4.48
days of sales outstanding = 81.47

c

Sales to total assets = 300000/203000=1.48

d

Inventory turnover = COGS/inventory
Inventory turnover = 190000/48000
Inventory turnover = 3.96
days of inventory on hand = number of days in a year/inventory turnover
days of inventory on hand = 365/3.96
days of inventory on hand = 92.17

e

Debt/asset = (58000+20000)/203000=38.42%

Please ask remaining parts separately, questions are unrelated. I have done one bonus

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