Find for Armstrong Company and Blair Company :Asset Turnover Ratios - (a) Fixed Asset turnover (times)(b) Receivables turnover (times)(c) Inventory turnover (times) Selected data from the financial statements for the previous year followsArmstrongCompany35,00077,00081,500BlairAccounts receivable (net)InventoryLong-term debtOther data:Company$ 55,00023,00076,000Share price year-end1815Income tax rate30%30%Dividends declared and paidShares Outstanding$ 300,00050,000$48,00015,000%24%24 BlairArmstrongCompanyCompanyStatement of Financial Position$ 35,00054,000170,000185,00085,500$ 529,50030,00043,00042,500420,000340,000CashAccounts receivable (net)InventoryProperty, plant, and equipment (net)Other non- current assets$ 875,500$ 52,50076,000554,000132,00061,000Total assets$134,00081,500230,00042,00042,000Current liabilitiesLong-térm debt (10%)Share capitalContributed surplusRetained earnings$ 529,500$ 875,500Total liabilities and shareholders' equityStatement of EarningsSales revenue (1/3 on credit)Cost of sales$ 600,000(300,000)(216,000)$ 960,000(432,000)(384,000)$ 144,000Expenses (including interest and income tax)84,000Net earnings

Ratio analysis helps in understanding financial statements. Ratio analysis gives a knowledge of the…

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Find for Armstrong Company and Blair Company : Asset Turnover Ratios - (a) Fixed Asset turnover (times) (b) Receivables turnover (times) (c) Inventory turnover (times)

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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Question

Find for Armstrong Company and Blair Company :

Asset Turnover Ratios -

(a) Fixed Asset turnover (times)

(b) Receivables turnover (times)

Selected data from the financial statements for the previous year follows
Armstrong
Company
35,000
77,000
81,500
Blair
Accounts receivable (net)
Inventory
Long-term debt
Other data:
Company
$ 55,000
23,000
76,000
Share price year-end
18
15
Income tax rate
30%
30%
Dividends declared and paid
Shares Outstanding
$ 300,000
50,000
$
48,000
15,000
%24
%24

Blair
Armstrong
Company
Company
Statement of Financial Position
$ 35,000
54,000
170,000
185,000
85,500
$ 529,500
30,000
43,000
42,500
420,000
340,000
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Other non- current assets
$ 875,500
$ 52,500
76,000
554,000
132,000
61,000
Total assets
$134,000
81,500
230,000
42,000
42,000
Current liabilities
Long-térm debt (10%)
Share capital
Contributed surplus
Retained earnings
$ 529,500
$ 875,500
Total liabilities and shareholders' equity
Statement of Earnings
Sales revenue (1/3 on credit)
Cost of sales
$ 600,000
(300,000)
(216,000)
$ 960,000
(432,000)
(384,000)
$ 144,000
Expenses (including interest and income tax)
84,000
Net earnings

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