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Exercise 13.9 Calculating ratios. LO 13-6 The following selected accounts were taken from the financial records of Los Olivos
Accounts Receivable at December 31, 2018, was $56.050. Merchandise inventory at December 31, 2018, was $57200. Bas account ba
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Answer #1
Gross profit percentage = Gross profit / Net Sales
Gross profit percentage = ($523,000-$1,800-$384,300) / ($523,000-$1,800)
Gross profit percentage = 26.26631%
Working capital = Current assets - Current liabilities
Working capital = ($24,940+$46,300+$8,100+$34,300+$2,210+$1,270) - ($21,000+$27,590+$210)
Working capital = $68,320
Current ratio = Current assets / Current liabilities
Current ratio = ($24,940+$46,300+$8,100+$34,300+$2,210+$1,270) / ($21,000+$27,590+$210)
Current ratio = 240%
Inventory turnover = Cost of goods sold / average inventory
Inventory turnover = $384,300 / (($34,300+$57,200)/2)
Inventory turnover = 8.4 Times
Accounts Receiveble Turnover = Net Credit Sales / Average accounts receiveble
Accounts Receiveble Turnover = ($523,000-$1,800) / (($46,300+$56,050)/2)
Accounts Receiveble Turnover = 10.18466

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