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5. Asset turnover ratio 6. Profit margin on sales 7. Return on assets % %

5. Asset turnover ratio 6. Profit margin on sales 7. Return on assets % %

FINANCIAL ACCOUNTING
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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Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.)

1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio 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) 41.00 days 17.84 20.45 days % % % times %
Transcribed Image Text:1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio 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) 41.00 days 17.84 20.45 days % % % times %
Financial statements for Askew Industries for 2021 are shown below (in thousands): 2821 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash $ 9,100 (6,325) 2,775 (2,125) Bonds payable Common stock Retained earnings $ (210) (176) 264 Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity Current liabilities Dec. 31 2021 $ 610 610 810 2,100 $4,130 $1,160 1,450 610 910 $4,130 2828 $ 518 410 610 2,200 $3,730 $ 910 1,450 610 760 $3,730
Transcribed Image Text:Financial statements for Askew Industries for 2021 are shown below (in thousands): 2821 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash $ 9,100 (6,325) 2,775 (2,125) Bonds payable Common stock Retained earnings $ (210) (176) 264 Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity Current liabilities Dec. 31 2021 $ 610 610 810 2,100 $4,130 $1,160 1,450 610 910 $4,130 2828 $ 518 410 610 2,200 $3,730 $ 910 1,450 610 760 $3,730
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