Sub : AccountingPls answer very fast.I ll upvote correct answer. Thank YouFinancial information for Sigma Company is presented below. Calculate the following ratios for Year 2.(a) Inventory turnover.(b) Accounts receivable turnover.(c) Return on total assets.(d) Times interest earned.(e) Total asset turnover. Year 2Year 1Assets: Cash$ 18,000$ 22,000Marketable securities25,0000Accounts receivable38,00042,000Inventory61,00052,000Prepaid insurance6,0009,000Long-term investments49,00020,000Plant assets, net218,000225,000Total assets$ 415,000$ 370,000 Net income after interest expense and taxes$ 62,250Sales (all on credit)305,000Cost of goods sold123,000Interest expense15,600Income tax expense27,000

Inventory turnover = Cost of goods sold / Average inventory Inventory turnover = $123,000 /…

Answered: ccounting Pls answer very fast.I ll…

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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Sub : Accounting
Pls answer very fast.I ll upvote correct answer. Thank You

Financial information for Sigma Company is presented below. Calculate the following ratios for Year 2.

(a) Inventory turnover.
(b) Accounts receivable turnover.
(c) Return on total assets.
(d) Times interest earned.
(e) Total asset turnover.

	Year 2	Year 1
Assets:
Cash	$ 18,000	$ 22,000
Marketable securities	25,000	0
Accounts receivable	38,000	42,000
Inventory	61,000	52,000
Prepaid insurance	6,000	9,000
Long-term investments	49,000	20,000
Plant assets, net	218,000	225,000
Total assets	$ 415,000	$ 370,000

Net income after interest expense and taxes	$ 62,250
Sales (all on credit)	305,000
Cost of goods sold	123,000
Interest expense	15,600
Income tax expense	27,000

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