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Compute the following ratios for 2022 and 2021. (Round current ratio and invertory turnover ratio to 2 decimal places, e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g. 1.6 or 1.6%.) (a) (b) (c) (d) (e) (f) (g) (a) (b) (c) Current ratio. Inventory turnover. (Inventory on 12/31/20 was $344.) Profit margin. Return on assets. (Assets on 12/31/20 were $1,876.) Return on common stockholders' equity. (Stockholders' equity-common on 12/31/20 was $884.) Debt to assets ratio. Times interest earned. Current ratio Inventory turnover Profit margin 2022 :1 times % 2021 :1 times %

Compute the following ratios for 2022 and 2021. (Round current ratio and invertory turnover ratio to 2 decimal places, e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g. 1.6 or 1.6%.) (a) (b) (c) (d) (e) (f) (g) (a) (b) (c) Current ratio. Inventory turnover. (Inventory on 12/31/20 was $344.) Profit margin. Return on assets. (Assets on 12/31/20 were $1,876.) Return on common stockholders' equity. (Stockholders' equity-common on 12/31/20 was $884.) Debt to assets ratio. Times interest earned. Current ratio Inventory turnover Profit margin 2022 :1 times % 2021 :1 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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The condensed financial statements of waterway company for the years 2021ad 2022 are as follows.

WATERWAY COMPANY

Balance Sheets

December 31

  2022 2021
Current assets    
Cash and cash equivalents $354 $357
Accounts receivable (net) 402 468
Inventory 384 432
Prepaid expenses 172 106
Total current assets 1,312 1,363
Investments 13 15
Property, plant, and equipment (net) 390 426
Intangibles and other assets 480 504
Total assets $2,195 $2,308
Current liablities $808 $890
Long-term liabilities 392 426
Stockholders' equity-common 995 992
Total liabilities and stockholders' equity $2,195 $2,308

 

  2022 2021
Net sales $3,900 $3,790
Expenses    
cost of goods sold 890 944
selling and administrative expenses 2,305 2,392
Interest expense 24 23

Total expenses

 3,219 3,359
Income before income taxes 681 431
Income tax expense 150 86
Net income $531 $345

 

Compute the following ratios for 2022 and 2021.

(a) Current ratio.

(b) Inventory turnover. (Inventory on 12/31/20 was $344.)

(c) Profit margin.

(d) Return on assets. (Assets on 12/31/20 were $1,876.)

(e) Return on common stockholders' equity. (stockholders' equity-common on 12/31/20 was $884.)

(f) Debt to assets ratio.

(g) Times interest earned.

 

Compute the following ratios for 2022 and 2021. (Round current ratio and invertory turnover ratio to 2 decimal places, e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g. 1.6 or 1.6%.) (a) (b) (c) (d) (e) (f) (g) (a) (b) (c) (d) (e) (f) (g) Current ratio. Inventory turnover. (Inventory on 12/31/20 was $344.) Profit margin. Return on assets. (Assets on 12/31/20 were $1,876.) Return on common stockholders' equity. (Stockholders' equity-common on 12/31/20 was $884.) Debt to assets ratio. Times interest earned. Current ratio Inventory turnover Profit margin Return on assets Return on common stockholders' equity Debt to assets ratio Times interest earned 2022 times % % de % times 2021 :1 times % % % % times
Transcribed Image Text:Compute the following ratios for 2022 and 2021. (Round current ratio and invertory turnover ratio to 2 decimal places, e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g. 1.6 or 1.6%.) (a) (b) (c) (d) (e) (f) (g) (a) (b) (c) (d) (e) (f) (g) Current ratio. Inventory turnover. (Inventory on 12/31/20 was $344.) Profit margin. Return on assets. (Assets on 12/31/20 were $1,876.) Return on common stockholders' equity. (Stockholders' equity-common on 12/31/20 was $884.) Debt to assets ratio. Times interest earned. Current ratio Inventory turnover Profit margin Return on assets Return on common stockholders' equity Debt to assets ratio Times interest earned 2022 times % % de % times 2021 :1 times % % % % times
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