I was successful with finding the totals for all the other answers but I cant figure the last two out. I know that I need to use average inventory but there is not beginning and ending inventory. ### Financial Ratios Calculation**Objective:** Compute the following financial ratios as of December 31, 2021. Use 365 days for calculation and round answers to one decimal place (e.g., 52.7).1. **Current Ratio:** - Value: 2.8:12. **Accounts Receivable Turnover:** - Value: 5.3 times3. **Average Collection Period:** - Value: 69 days4. **Inventory Turnover:** - [Data Not Provided]5. **Days in Inventory:** - [Data Not Provided]These financial ratios help in assessing the company's efficiency in managing its assets and liabilities. **Balance Sheet Comparison for 2021 and 2020****Assets**- **Cash** - 2021: $40,200 - 2020: $30,000- **Accounts Receivable (Net)** - 2021: $86,000 - 2020: $81,000- **Inventory** - 2021: $81,000 - 2020: $71,000- **Property, Plant and Equipment (Net)** - 2021: $206,000 - 2020: $201,000 **Total Assets** - 2021: $413,200 - 2020: $383,000**Liabilities and Shareholders' Equity**- **Accounts Payable** - 2021: $74,000 - 2020: $81,000- **Mortgage Payable (15%, due in 15 years)** - 2021: $121,000 - 2020: $121,000- **Common Stock, $10 Par** - 2021: $161,000 - 2020: $141,000- **Retained Earnings** - 2021: $57,200 - 2020: $40,000 **Total Liabilities and Shareholders' Equity** - 2021: $413,200 - 2020: $383,000**Additional Information for 2021:**1. **Net Income** - $46,0002. **Sales on Account** - $471,000 - Sales returns and allowances: $28,4503. **Cost of Goods Sold** - $364,8004. **Net Cash Provided by Operating Activities** - $70,000This financial summary provides a year-over-year comparison of assets, liabilities, and equity, highlighting key financial changes and performance indicators for 2021.

In accounting, the inventory turnover is a measure of the number of times inventory is sold or used…

Compute the following ratios at December 31, 2021: (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 52.7.) (a) (b) (d) Current ratio (c) Average collection period (e) Accounts receivable turnover Inventory turnover Days in inventory 2.8 5.3 69 :1 times days times days

Compute the following ratios at December 31, 2021: (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 52.7.) (a) (b) (d) Current ratio (c) Average collection period (e) Accounts receivable turnover Inventory turnover Days in inventory 2.8 5.3 69 :1 times days times days

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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Explain inventory overstatement. A merchandising company has asked you to advise it on how to detect fraudulent financial reporting. Management wants your help in detecting inventory overstatement. Further, management wants to know how to find evidence of inventory overstatement. Using your own numbers, make up an example to show management the effect of overstating inventory. Show how inventory overstatement at the end of Year 1 carries through to the beginning inventory overstatement in Year 2. Prepare a brief report to management suggesting ways management could detect inventory overstatement.
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