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Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash $ 9,600 (6,450) 3,150 (2,250) Bonds payable Common stock Retained earnings (260) (256) $ 384 Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity Current liabilities 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio Dec. 31 2021 $ 660 660 860 2,600 $4,780 $1,460 1,700 660 960 $4,780 2020 $ 560 460 660 2,700 $4,380 $1,210 1,700 660 810 $4,380 Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) days

Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash $ 9,600 (6,450) 3,150 (2,250) Bonds payable Common stock Retained earnings (260) (256) $ 384 Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity Current liabilities 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio Dec. 31 2021 $ 660 660 860 2,600 $4,780 $1,460 1,700 660 960 $4,780 2020 $ 560 460 660 2,700 $4,380 $1,210 1,700 660 810 $4,380 Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) days

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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Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash Bonds payable Common stock Retained earnings $ 9,600 (6,450) 3,150 (2,250) Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio $ Liabilities and Shareholders' Equity Current liabilities 4. Average collection period 5. Asset turnover ratio (260) (256) 384 6. Profit margin on sales 7. Return on assets Dec. 31 8. Return on equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) 2021 $ 660 $ 660 860 2,600 $4,780 $1,460 1,700 660 960 $4,780 Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) 2020 560 460 660 2,700 $4,380 $1,210 1,700 660 810 $4,380 days days % % % times %
Transcribed Image Text:Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash Bonds payable Common stock Retained earnings $ 9,600 (6,450) 3,150 (2,250) Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover ratio $ Liabilities and Shareholders' Equity Current liabilities 4. Average collection period 5. Asset turnover ratio (260) (256) 384 6. Profit margin on sales 7. Return on assets Dec. 31 8. Return on equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) 2021 $ 660 $ 660 860 2,600 $4,780 $1,460 1,700 660 960 $4,780 Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) 2020 560 460 660 2,700 $4,380 $1,210 1,700 660 810 $4,380 days days % % % times %
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