Use balance sheet and Income statement in first picture to answer questions in second CashAccounts ReceivableInventoryLandBuildings and EquipmentTotal AssetsAccounts PayableNotes PayableBonds Payable (Long-Term)Common StockAdditional Paid-In CapitalRetained EarningsTotal Liabilities and Stockholders'EquitySalesCost of Merchandise SoldGross ProfitAdvertising ExpenseDepreciation ExpenseOffice Supplies ExpenseInterest ExpenseProvision for Income TaxesNet Income2001$ 771,7501,221,9381,543,5001,218,2811,768,594$6,524,063$2,572,500200,0001,286,250192,9381,125,4691,146,906$6,524,0632001$ 6,431,250(3,858,750)2,572,500(160,781)(257,250)(128,625)(257,250)(1,215,506)$ 553,0882002$ 900,3751,382,7191,672,1251,218,2811,707,813$6,881,313$2,701,125300,000803,906192,9381,125,4691,757,875$6,881,3132002$ 8,000,000(5,042,100)2,957,900(418,031)(328,251)(144,703)(192,938)(1,028,743)$ 845,234 Seventy-five percent of Rudolph's sales are credit sales. Assume a 365-day calendar year. OnDecember 1, Rudolph declared and paid $200,000 and $34,265 of common and preferred dividends,respectively.Required:• Calculate Rudolph's inventory turnover at December 31, 2002.• Calculate the number of days' sales in Rudolph's inventory at December 31, 2002.• Calculate Rudolph's account receivable turnover at December 31, 2002.• Calculate the number of days' sales in Rudolph's receivables at December 31, 2002.• Calculate Rudolph's times interest earned at December 31, 2002.• Calculate Rudolph's ratio of liabilities to stockholders' equity for 2002.• Calculate Rudolph's return on stockholders' equity for 2002.

Name: Use balance sheet and Income statement in first picture to answer ques
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Use balance sheet and Income statement in first picture to answer questions in second CashAccounts ReceivableInventoryLandBuildings and EquipmentTotal AssetsAccounts PayableNotes PayableBonds Payable (Long-Term)Common StockAdditional Paid-In CapitalR

“Since you have posted a question with multiple sub-parts, we will solve first three subparts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.”. Introduction: On the basis of financial statements of a company, ratio analysis is conducted to have insight into company's performance and efficiency. Popular category of ratios are: 1. Liquidity ratio 2. Profitability ratio 3. Operating efficiency ratio 4. Solvency ratioCalculation of inventory turnover at December 31, 2002: Inventory turnover = Cost of goods sold / Average inventory = $5,042,100 / $1,607,812.50 = 3.13600 times Note: Average inventory = (Beginning inventory + Ending inventory) / 2 = ($1,543,500 + $1,672,125) / 2 = $3,215,625 / 2 =$1,607,812.50Calculation of number of days’ sales in inventory at December 31, 2002: Number of days’ sales in inventory = Number of days in a year / Inventory turnover = 365 / 3.13600 = 116.39030 daysCalculation of accounts receivable turnover at December 31, 2002: Accounts receivable turnover = Net credit sales / Average accounts receivable = $8,000,000 / $1,302,329 = 6.14284 times Note: Average accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2 = ($1,221,938 + $1,382,719) / 2 = $2,604,657 / 2 = $1,302,329