Additional information for 2020: 1. Net income was $25,600.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
CAN SOMEONE HELP ME FIGURE OUT THE RATIOS BY THE INFORMATION THAT IS GIVIN ?
Additional information for 2020:
1. | Net income was $25,600. | |
2. | Sales on account were $406,800. Sales returns and allowances amounted to $19,800. | |
3. | Cost of goods sold was $199,800. | |
4. | Net cash provided by operating activities was $45,700. | |
5. | Capital expenditures were $23,600, and cash dividends were $10,200. |
![Lendell Company
Balance Sheets
December 31
2020
2019
$ 16,000
$ 30,000
Cash
Accounts receivable (net)
70,000
59,000
Inventory
59,000
49,000
Plant assets (net)
200,000
179,000
$345,000
$317,000
Accounts payable
$50,000
$59,000
Mortgage payable (15%)
106,500
106,500
Common stock, $10 par
142,000
125,000
Retained earnings
46,500
26,500
$345,000
$317,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9957b034-7dc4-42f0-9ed6-fcce58465f30%2F1bd45c16-1f66-4c88-9e2e-c728e222accb%2Fa3wddna_processed.png&w=3840&q=75)
Transcribed Image Text:Lendell Company
Balance Sheets
December 31
2020
2019
$ 16,000
$ 30,000
Cash
Accounts receivable (net)
70,000
59,000
Inventory
59,000
49,000
Plant assets (net)
200,000
179,000
$345,000
$317,000
Accounts payable
$50,000
$59,000
Mortgage payable (15%)
106,500
106,500
Common stock, $10 par
142,000
125,000
Retained earnings
46,500
26,500
$345,000
$317,000
![Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, eg. 1.67. Round Accounts receivable
turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, eg. 1.6.)
(a)
Current ratio
:1
(Ь)
Accounts receivable turnover
times
(c)
Average collection period
days
(d)
Inventory turnover
times
(e)
Days in inventory
days
(f)
Free cash flow
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9957b034-7dc4-42f0-9ed6-fcce58465f30%2F1bd45c16-1f66-4c88-9e2e-c728e222accb%2F34xw80g_processed.png&w=3840&q=75)
Transcribed Image Text:Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, eg. 1.67. Round Accounts receivable
turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, eg. 1.6.)
(a)
Current ratio
:1
(Ь)
Accounts receivable turnover
times
(c)
Average collection period
days
(d)
Inventory turnover
times
(e)
Days in inventory
days
(f)
Free cash flow
%24
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