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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
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
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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education