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Additional information for 2020: 1.   Net income was $25,600.

Additional information for 2020: 1.   Net income was $25,600.

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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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
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
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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