Sandhill Co. has these comparative balance sheet data:SANDHILL CO.Balance SheetsDecember 31 2020 2019Cash $ 29,205 $ 58,410Accounts receivable (net) 136,290 116,820Inventory 116,820 97,350Plant assets (net) 389,400 350,460 $671,715 $623,040Accounts payable $ 97,350 $ 116,820Mortgage payable (15%) 194,700 194,700Common stock, $10 par 272,580 233,640Retained earnings 107,085 77,880 $671,715 $623,040Additional information for 2020:1. Net income was $34,900.2. Sales on account were $378,200. Sales returns and allowances amounted to $29,600.3. Cost of goods sold was $204,700.4. Net cash provided by operating activities was $57,300.5. Capital expenditures were $28,200, and cash dividends were $13,800.Compute the following ratios at December 31, 2020. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.)(a) Current ratio. :1(b) Accounts receivable turnover. times(c) Average collection period. days(d) Inventory turnover. times(e) Days in inventory. days(f) Free cash flow. $

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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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Sandhill Co. has these comparative balance sheet data:

SANDHILL CO. Balance Sheets December 31
	2020	2019
Cash	$ 29,205	$ 58,410
Accounts receivable (net)	136,290	116,820
Inventory	116,820	97,350
Plant assets (net)	389,400	350,460
	$671,715	$623,040
Accounts payable	$ 97,350	$ 116,820
Mortgage payable (15%)	194,700	194,700
Common stock, $10 par	272,580	233,640
Retained earnings	107,085	77,880
	$671,715	$623,040

Additional information for 2020:

1.		Net income was $34,900.
2.		Sales on account were $378,200. Sales returns and allowances amounted to $29,600.
3.		Cost of goods sold was $204,700.
4.		Net cash provided by operating activities was $57,300.
5.		Capital expenditures were $28,200, and cash dividends were $13,800.

Compute the following ratios at December 31, 2020. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.)

(a)	Current ratio.		:1
(b)	Accounts receivable turnover.		times
(c)	Average collection period.		days
(d)	Inventory turnover.		times
(e)	Days in inventory.		days
(f)	Free cash flow.	$

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