11. The 2021 income statement of Anderson Medical Supply Company reported net sales of $11 million, cost of goods sold of $6.7 million, and net income of $895,000. The following table shows the company's comparative balance sheets for 2021 and 2020: ($ in thousands) 2021 2020Assets Cash$680 $760 Accounts receivable 1,080 690 Inventory 1,350 1,260 Property, plant, and equipment (net) 4,300 4,020 Total assets$7,410 $6,730 Liabilities and shareholders’ equity Current liabilities$1,340 $1,210 Bonds payable 2,150 2,150 Common stock 2,900 2,900 Retained earnings 1,020 470 Total liabilities and shareholders' equity$7,410 $6,730 Required:1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) Required:1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.)Inventory turnover ratioReceivables turnover ratioAverage collection periodAsset turnover ratiotimestimesdaystimes

Answer 1) Calculation of Inventory Turnover Ratio Inventory turnover ratio = Cost of Goods Sold/…

Answered: 1. The 2021 income statement of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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11. The 2021 income statement of Anderson Medical Supply Company reported net sales of $11 million, cost of goods sold of $6.7 million, and net income of $895,000. The following table shows the company's comparative balance sheets for 2021 and 2020:

	($ in thousands)
	2021		2020
Assets
Cash	$	680		$	760
Accounts receivable		1,080			690
Inventory		1,350			1,260
Property, plant, and equipment (net)		4,300			4,020
Total assets	$	7,410		$	6,730
Liabilities and shareholders’ equity
Current liabilities	$	1,340		$	1,210
Bonds payable		2,150			2,150
Common stock		2,900			2,900
Retained earnings		1,020			470
Total liabilities and shareholders' equity	$	7,410		$	6,730

Required:
1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.)

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