26. Given the following financial data for Alpha Company, calculate the ratios listedbelow the data. (Compute all ratios and percents to 2 decimal points.)Sales (all oncredit)Cost of GoodsSold$650,000422,500Income before78,000Income TaxesNet Income54,600EndingBeginningBalancesBalancesCash$19,500$15,000Accounts Receivable65,00059,800(net)Merchandise71,50066,300InventoryPlant and Equipment(net)195,000183,900Total Assets$351,000 $325,000Current$74,100$100,200LiabilitiesLong-Term NotesPayable97,500100,000Stockholders'179,400124,800EquityTotal Liabilities and Stockholders'$351,000 $325,000Equity A. Current RatioB. Acid-Test RatioC. Accounts Receivable TurnoverD. Days' Sales UncollectedE. Inventory Turnover .F. Days' Sales in InventoryG. Debt Ratio (%).H. Gross Margin Ratio (%)I. Return on Total Assets (%)

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Accounting

A. Current Ratio B. Acid-Test Ratio C. Accounts Receivable Turnover,

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

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

26. Given the following financial data for Alpha Company, calculate the ratios listed
below the data. (Compute all ratios and percents to 2 decimal points.)
Sales (all on
credit)
Cost of Goods
Sold
$650,000
422,500
Income before
78,000
Income Taxes
Net Income
54,600
Ending
Beginning
Balances
Balances
Cash
$19,500
$15,000
Accounts Receivable
65,000
59,800
(net)
Merchandise
71,500
66,300
Inventory
Plant and Equipment
(net)
195,000
183,900
Total Assets
$351,000 $325,000
Current
$74,100
$100,200
Liabilities
Long-Term Notes
Payable
97,500
100,000
Stockholders'
179,400
124,800
Equity
Total Liabilities and Stockholders'
$351,000 $325,000
Equity

A. Current Ratio
B. Acid-Test Ratio
C. Accounts Receivable Turnover
D. Days' Sales Uncollected
E. Inventory Turnover .
F. Days' Sales in Inventory
G. Debt Ratio (%).
H. Gross Margin Ratio (%)
I. Return on Total Assets (%)

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