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) Calculate the following liquidity ratios for 2020. 1. Working capital- 2.Current Ratio- 3. Acid test ratio- 4. Accounts receivable turnover- B) calculate the following liquidity ratios for 2020. 1. Average collection period (in days)- 2. Inventory turnover (in times)- C) calculate the average days to sell inventory for 2020. 1. Average days to sell inventory

) Calculate the following liquidity ratios for 2020. 1. Working capital- 2.Current Ratio- 3. Acid test ratio- 4. Accounts receivable turnover- B) calculate the following liquidity ratios for 2020. 1. Average collection period (in days)- 2. Inventory turnover (in times)- C) calculate the average days to sell inventory for 2020. 1. Average days to sell inventory

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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A) Calculate the following liquidity ratios for 2020. 1. Working capital- 2.Current Ratio- 3. Acid test ratio- 4. Accounts receivable turnover- B) calculate the following liquidity ratios for 2020. 1. Average collection period (in days)- 2. Inventory turnover (in times)- C) calculate the average days to sell inventory for 2020. 1. Average days to sell inventory-
Ivanhoe Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Ivanhoe Medical Comparative Balance Sheet As of December 31 Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities 2020 par value $359,000 1,014,000 736,000 381,350 2,490,350 8,737,045 $3,167,000 3,702,600 6,869,600 Preferred stock, $5 par value Common stock, Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $11,227,395 58,950 $11,227,395 $10,561,745 104,6 4,194,195 2019 4,357,795 $417,450 776,400 681,000 247,000 2,121,850 8,439,895 $2,846,000 3,892,600 6,738,600 58,950 103,850 3,660,345 3,823,145 $10,561,745
Transcribed Image Text:Ivanhoe Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Ivanhoe Medical Comparative Balance Sheet As of December 31 Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities 2020 par value $359,000 1,014,000 736,000 381,350 2,490,350 8,737,045 $3,167,000 3,702,600 6,869,600 Preferred stock, $5 par value Common stock, Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $11,227,395 58,950 $11,227,395 $10,561,745 104,6 4,194,195 2019 4,357,795 $417,450 776,400 681,000 247,000 2,121,850 8,439,895 $2,846,000 3,892,600 6,738,600 58,950 103,850 3,660,345 3,823,145 $10,561,745
Ivanhoe Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year 2020 $10,177,200 5,612,550 4,564,650 2,840,250 1,724,400 300,400 1,424,000 427,200 $996,800 29,500 433,450 462,950 533,850 2019 $9,613,950 5,298,800 4,315,150 2,634,150 1,681,000 308,650 1,372,350 411,705 $960,645 29,500 413,100 442,600 518,045 3,142,300 3,660,345 $4,194,195 $3,660,345
Transcribed Image Text:Ivanhoe Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year 2020 $10,177,200 5,612,550 4,564,650 2,840,250 1,724,400 300,400 1,424,000 427,200 $996,800 29,500 433,450 462,950 533,850 2019 $9,613,950 5,298,800 4,315,150 2,634,150 1,681,000 308,650 1,372,350 411,705 $960,645 29,500 413,100 442,600 518,045 3,142,300 3,660,345 $4,194,195 $3,660,345
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