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Business
Accounting
Cash $45,000 December 31, 2025 Notes payable (short-term) $50,000 Receivables $110,000 Accounts payable 32,000 Less: Allowance 15,000 95,000 Accrued liabilities 5,000 Inventory 170,000 Common stock (par $5) 260,000 Prepaid insurance Land 8,000 Retained earnings 141,000 20,000 Equipment (net) 150,000 $488,000 $488,000 CARVER INC. Income Statement For the Year Ended December 31, 2025 Sales revenue $1,400,000 Cost of goods sold Inventory, Jan. 1, 2025 $200,000 Purchases 790,000 Cost of goods available for sale 990,000 Inventory, Dec. 31, 2025 (170,000) Cost of goods sold 820,000 Gross profit on sales Operating expenses Net income .580,000 170,000 $410,000 (a) Compute the following ratios or relationships of Carver Inc. Assume that the ending account balances are representative unless the information provided indicates differently. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%.) (1) Current ratio times. (2) Inventory turnover times

Cash $45,000 December 31, 2025 Notes payable (short-term) $50,000 Receivables $110,000 Accounts payable 32,000 Less: Allowance 15,000 95,000 Accrued liabilities 5,000 Inventory 170,000 Common stock (par $5) 260,000 Prepaid insurance Land 8,000 Retained earnings 141,000 20,000 Equipment (net) 150,000 $488,000 $488,000 CARVER INC. Income Statement For the Year Ended December 31, 2025 Sales revenue $1,400,000 Cost of goods sold Inventory, Jan. 1, 2025 $200,000 Purchases 790,000 Cost of goods available for sale 990,000 Inventory, Dec. 31, 2025 (170,000) Cost of goods sold 820,000 Gross profit on sales Operating expenses Net income .580,000 170,000 $410,000 (a) Compute the following ratios or relationships of Carver Inc. Assume that the ending account balances are representative unless the information provided indicates differently. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%.) (1) Current ratio times. (2) Inventory turnover times

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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December 31, 2025 Cash $45,000 Notes payable (short-term) $50,000 Receivables $110,000 Accounts payable 32,000 Less: Allowance 15,000 95,000 Accrued liabilities 5,000 Inventory 170,000 Common stock (par $5) 260,000 Prepaid insurance Land 8,000 Retained earnings 141,000 20,000 Equipment (net) 150,000 $488,000 $488,000 CARVER INC. Income Statement For the Year Ended December 31, 2025 Sales revenue $1,400,000 Cost of goods sold Inventory, Jan. 1, 2025 $200,000 Purchases 790,000 Cost of goods available for sale 990,000 Inventory, Dec. 31, 2025 (170,000) Cost of goods sold 820,000 Gross profit on sales Operating expenses Net income $580,000 170,000 $410,000 (a) Compute the following ratios or relationships of Carver Inc. Assume that the ending account balances are representative unless the information provided indicates differently. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%.) (1) Current ratio (2) Inventory turnover (3) Accounts receivable turnover (4) Earnings per share (5) Profit margin on sales (6) Return on assets on December 31, 2025 times times times $ % %
Transcribed Image Text:December 31, 2025 Cash $45,000 Notes payable (short-term) $50,000 Receivables $110,000 Accounts payable 32,000 Less: Allowance 15,000 95,000 Accrued liabilities 5,000 Inventory 170,000 Common stock (par $5) 260,000 Prepaid insurance Land 8,000 Retained earnings 141,000 20,000 Equipment (net) 150,000 $488,000 $488,000 CARVER INC. Income Statement For the Year Ended December 31, 2025 Sales revenue $1,400,000 Cost of goods sold Inventory, Jan. 1, 2025 $200,000 Purchases 790,000 Cost of goods available for sale 990,000 Inventory, Dec. 31, 2025 (170,000) Cost of goods sold 820,000 Gross profit on sales Operating expenses Net income $580,000 170,000 $410,000 (a) Compute the following ratios or relationships of Carver Inc. Assume that the ending account balances are representative unless the information provided indicates differently. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%.) (1) Current ratio (2) Inventory turnover (3) Accounts receivable turnover (4) Earnings per share (5) Profit margin on sales (6) Return on assets on December 31, 2025 times times times $ % %
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