Vala Net salesCost of goods soldGross profitOperating expensesInterest expenseIncome tax expenseNet incomeAssetsCash$ 8,700(6,175)2,525(1,975)(150)(160)$ 240Comparative Balance SheetsAccounts receivableInventoryProperty, plant, and equipment (net)Bonds payableCommon stockRetained earningsLiabilities and Shareholders' EquityCurrent liabilities1. Inventory turnover ratio2. Average days in inventory3. Receivables turnover ratioDecember 314. Average collection period5. Asset turnover ratio6. Profit margin on sales7. Return on assets8. Return on equity9. Equity multiplier10. Return on equity (using the DuPont framework)2024$ 5505507501,500$ 3,350$ 8001,150550850$ 3,350timesdaystimesdaysRequired:Calculate the following ratios for 2024.Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.%%%2023times%$4503505501,600$ 2,950$ 5501,150550700$ 2,950

Name: Vala Net salesCost of goods soldGross profitOperating expensesInterest
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Description: Vala Net salesCost of goods soldGross profitOperating expensesInterest expenseIncome tax expenseNet incomeAssetsCash$ 8,700(6,175)2,525(1,975)(150)(160)$ 240Comparative Balance SheetsAccounts receivableInventoryProperty, plant, and equipment (net)Bon

· Ratio analysis used to identify the business performance of the company.· It is used to measure…

Answered: 1. Inventory turnover ratio 2. Average…

Business

Accounting

1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio times days times

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Vala

Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income tax expense
Net income
Assets
Cash
$ 8,700
(6,175)
2,525
(1,975)
(150)
(160)
$ 240
Comparative Balance Sheets
Accounts receivable
Inventory
Property, plant, and equipment (net)
Bonds payable
Common stock
Retained earnings
Liabilities and Shareholders' Equity
Current liabilities
1. Inventory turnover ratio
2. Average days in inventory
3. Receivables turnover ratio
December 31
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)
2024
$ 550
550
750
1,500
$ 3,350
$ 800
1,150
550
850
$ 3,350
times
days
times
days
Required:
Calculate the following ratios for 2024.
Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.
%
%
%
2023
times
%
$450
350
550
1,600
$ 2,950
$ 550
1,150
550
700
$ 2,950

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