1. Inventory turnover ratio2. Average days in inventory3. Receivables turnover ratio4. 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)8.65 times42.20 days17,41 times20.96 days2696times Financial statements for Askew Industries for 2024 are shown below (in thousands):2024 Income statementNet salesCost of goods soldGross profitOperating expensesInterest expenseIncome tax expenseNet incomeAssetsCash$ 9,400(6,400)3,000(2,200)(240)(224)$ 336Bonds payableCommon stockRetained earningsComparative Balance Sheets.Accounts receivableInventoryProperty, plant, and equipment (net)Liabilities and Shareholders' EquityCurrent liabilitiesDecember 312024$ 6406408402,400$ 4,520$ 1,3401,600640940$ 4,5202023$ 5404406402,500$4,120$ 1,0901,600640790$ 4,220Required:Calculate the following ratios for 2024Note: Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.

The ratio analysis helps to analyse the financial statements of the business.The return on assets is…

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Business

Accounting

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

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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Question

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)
8.65 times
42.20 days
17,41 times
20.96 days
26
96
times

Financial statements for Askew Industries for 2024 are shown below (in thousands):
2024 Income statement
Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income tax expense
Net income
Assets
Cash
$ 9,400
(6,400)
3,000
(2,200)
(240)
(224)
$ 336
Bonds payable
Common stock
Retained earnings
Comparative Balance Sheets.
Accounts receivable
Inventory
Property, plant, and equipment (net)
Liabilities and Shareholders' Equity
Current liabilities
December 31
2024
$ 640
640
840
2,400
$ 4,520
$ 1,340
1,600
640
940
$ 4,520
2023
$ 540
440
640
2,500
$4,120
$ 1,090
1,600
640
790
$ 4,220
Required:
Calculate the following ratios for 2024
Note: Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.

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