Calculate the asset turnover for the year 2016 of this general accounting question Daab Sporting Goods provides the following data:2015Category2016Cash and Cash Equivalents$35,000$30,000Accounts Receivable, Net$40,000$50,000Merchandise Inventory$60,000$65,000Total Current Assets$135,000$145,000Property, Plant, and Equipment, Net $160,000$170,000Total Assets$295,000$315,000Net Sales (2016)$600,000Cost of Goods Sold($200,000)Gross Profit$400,000Calculate the asset turnover for the year 2016.

Step 1: Define Asset Turnover RatioThe Asset Turnover Ratio measures how efficiently a company…

Answered: Daab Sporting Goods provides the…

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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Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
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Using the information provided below:Rubialac PaintsSelected Income Statement Items, 2020Cash Sales $2,500,000Credit Sales $9,500,000Total Sales $12,000,000COGS 7,000,000 Rubialac PaintsSelected Balance Sheet Accounts12/31/2020 12/31/19 ChangeAccounts Receivable $550,000 $400,000 $150,000Inventory $275,000 $250,000 $25,000Accounts Payable $150,000 $110,000 $40,000 What is the inventory turnover for Rubialac Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?
Given the following data calculate DEF's operating cycle and cash conversion cycle.
National, Inc. provides the following data: 2025 2024 Cash $43,000 $25,000 Accounts Receivable, Net 98,000 62,000 Merchandise Inventory 70,000 50,000 Property, Plant, and Equipment, Net 200,000 120,000 Total Assets $411,000 $257,000 For the year ending December 31, 2025: Net Credit Sales $260,000 Cost of Goods Sold (150,000) Gross Profit $110,000 Calculate the accounts receivable turnover ratio for 2025. (Round your answer to two decimal places.)
The 2021 income statement of Adrian Express reports sales of $14,097,000, cost of goods sold of $8,154,000, and net income of $1,540,000. Balance sheet information is provided in the following table. ADRIAN EXPRESSBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 540,000 $ 700,000 Accounts receivable 1,280,000 940,000 Inventory 1,680,000 1,340,000 Long-term assets 4,740,000 4,180,000 Total assets $ 8,240,000 $ 7,160,000 Liabilities and Stockholders' Equity Current liabilities $ 1,960,000 $ 1,600,000 Long-term liabilities 2,240,000 2,340,000 Common stock 1,880,000 1,880,000 Retained earnings 2,160,000 1,340,000 Total liabilities and stockholders' equity $ 8,240,000 $ 7,160,000 Industry averages for the following four risk ratios are as follows:…
The 2024 income statement of Adrian Express reports sales of $17,595,000, cost of goods sold of $10,887,500, and net income of $1,650,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 2024 2023 Assets Current assets: Cash $650,000 $810,000 Accounts receivable 1,500,000 1,050,000 Inventory 1,900,000 1,450,000 Long-term assets 4,850,000 4,290,000 Total assets $8,900,000 $7,600,000 Liabilities and Stockholders' Equity Current liabilities $1,970,000 $1,710,000 Long-term liabilities 2,350,000 2,450,000 Common stock 1,950,000 1,950,000 Retained earnings 2,630,000 1,490,000 Total liabilities and stockholders' equity $8,900,000 $7,600,000 Industry averages for the following four risk ratios are as follows: Average collection period 25 days Average days in inventory 60 days Current ratio 2 to 1 Debt to equity ratio 50% Required:1. Calculate the four risk…
Using the information provided, what is the collection cycle for the firm? Allied Industries, Inc. Selected Income Statement Items, 2017 Cash Sales $1,500,000 Credit Sales $7,500,000 Total Sales $9,000,000 COGS $6,000,000 Allied Industries, Inc. Selected Balance Sheet Accounts 12/31/201712/31/2016Change Accounts Receivable $270,000 $240,000 $30,000 Inventory $125,000 $100,000 $25,000 Accounts Payable $110,000 $90,000 $20,000
The 2024 income statement of Adrian Express reports sales of $16,605, 000, cost of goods sold of $10,106, 000, and net income of $1,620,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 2024 2023 Assets Current assets: Cash $620, 000 $780,000 Accounts receivable 1,440,000 1,020,000 Inventory 1,840,000 1,420,000 Long -term assets 4, 820, 000 4,260, 000 Total assets $8,720,000 $7, 480,000 Liabilities and Stockholders' Equity Current liabilities $2,000,000 $1,680,000 Long - term liabilities 2, 320,000 2,420,000 Common stock 1,980,000 1,980,000 Retained earnings 2, 420,000 1,400,000 Total liabilities and stockholders' equity $8,720,000 $7, 480,000 Industry averages for the following four risk ratios are as follows: Average collection period 25 days Average days in inventory 60 days Current ratio 2 to 1 Debt to equity ratio 50% Required: 1. Calculate the four risk ratios listed above for Adrian Express in 2024. 2. Do…
The 2024 income statement of Adrian Express reports sales of $17,931,000, cost of goods sold of $11,154,000, and net income of $1,660,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets Assets Current assets: Cash Accounts receivable December 31, 2024 and 2023 2024 $660,000 1,520,000 Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings 2023 1,920,000 4,860,000 $ 8,960,000 $ 1,960,000 2,360,000 1,940,000 2,700,000 $ 820,000 1,060,000 1,460,000 4,300,000 $ 7,640,000 $ 1,720,000 2,460,000 1,940,000 1,520,000 Total liabilities and stockholders' equity $ 8,960,000 $ 7,640,000 Industry averages for the following four ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio Required: 26 days 63 days 2 to 1 35% 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on…
Using the information provided, what is the accounts payable cycle for the firm? Allied Industries, Inc. Selected Income Statement Items, 2017 Cash Sales $1,500,000 Credit Sales $7.500,000 Total Sales $9,000,000 COGS $6,000,000 Allied Industries, Inc. Selected Balance Sheet Accounts 12/31/2017 12/31/2016 Change Accounts Receivable $270,000 S240.000 S30,000 Inventory $125,000 $100,000 S25,000
The 2024 income statement of Adrian Express reports sales of $21,510,000, cost of goods sold of $12,800,000, and net income of $2,140,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 2024 2023 Assets Current assets: Cash $920,000 $970,000 Accounts receivable 1,875,000 1,265,000 Inventory 2,385,000 1,775,000 Long-term assets 5,120,000 4,450,000 Total assets $10,300,000 $8,460,000 Liabilities and Stockholders' Equity Current liabilities $2,162,000 $1,892,000 Long-term liabilities 2,598,000 2,632,000 Common stock 2,175,000 2,065,000 Retained earnings 3,365,000 1,871,000 Total liabilities and stockholders' equity $10,300,000 $8,460,000 Industry averages for the following four risk ratios are as follows: Gross profit ratio 45% Return on assets 25% Profit margin 15% Asset turnover 12.5 times Return on equity 35% Required:1. Calculate the five…

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