JKL Company COMPARATIVE BALANCE SHEET For the Year 2015 & 2016 Assets 2015 2016 Cash 290,000 120,000 400,000 100,000 20,000 80,000 20.000 520,000 620,000 Accounts Receivable Trading Securities 40,000 Inventories 60,000 Prepaid Expenses Total Current Assets 10,000 Total Non-Current Assets 200,000 300,000 Total Assets 720,000 920,000 Liabilities Total Current Liabilities 100,000 50,000 Total Non-Current Liabilities 300,000 450,000 Owner's Equity Total Owner's Equity 320,000 420,000 Total Liabilities & OE 720,000 920,000 JKL Company COMPARATIVE INCÓME STATEMENT For the Year 2015 & 2016: 2015 2016 Net Sales 700,000 900,000 Cost of Goods Sold (100,000) (80,000) Gross Profit 600,000 820,000 Operating Expenses (50,000) (120,000) Earnings Before Interest 550,000 and Taxes 700,000 - Interest Expense [10,000 150.000) NI before Tax 540,000 650,000 Income Tax [162,000) (195,000) Net Income 378,000 455,000

JKL Company COMPARATIVE BALANCE SHEET For the Year 2015 & 2016 Assets 2015 2016 Cash 290,000 120,000 400,000 100,000 20,000 80,000 20.000 520,000 620,000 Accounts Receivable Trading Securities 40,000 Inventories 60,000 Prepaid Expenses Total Current Assets 10,000 Total Non-Current Assets 200,000 300,000 Total Assets 720,000 920,000 Liabilities Total Current Liabilities 100,000 50,000 Total Non-Current Liabilities 300,000 450,000 Owner's Equity Total Owner's Equity 320,000 420,000 Total Liabilities & OE 720,000 920,000 JKL Company COMPARATIVE INCÓME STATEMENT For the Year 2015 & 2016: 2015 2016 Net Sales 700,000 900,000 Cost of Goods Sold (100,000) (80,000) Gross Profit 600,000 820,000 Operating Expenses (50,000) (120,000) Earnings Before Interest 550,000 and Taxes 700,000 - Interest Expense [10,000 150.000) NI before Tax 540,000 650,000 Income Tax [162,000) (195,000) Net Income 378,000 455,000

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

Compute for Accounts Receivable Turnover Ratio, Asset Turnover Ratio, Inventory Turnover Ratio in 2015 and 2016

JKL Company
COMPARATIVE BALANCE SHEET
For the Year 2015 & 2016
Assets
2015
2016
400,000
100,000
20,000
80,000
20.000
620,000
Cash
290,000
120,000
40,000
60,000
10,000
520,000
Accounts Receivable
Trading Securities
Inventories
Prepaid Expenses
Total Current Assets
Total Non-Current
200,000 300,000
Assets
Total Assets
720,000
920,000
Liabilities
Total Current
Liabilities
100,000
50,000
Total Non-Current
Liabilities
300,000 450,000
Owner's
Equity
Total Owner's Equity
320,000
420,000
Total Liabilities & OE
720,000
920,000
JKL Company
COMPARATIVE INCÓME STATEMENT
For the Year 2015 & 2016:
2015
2016
Net Sales
700,000
900,000
Cost of Goods Sold
(100,000)
(80,000)
Gross Profit
600,000
820,000
Operating Expenses
(50,000)
(120,000)
Earnings Before Interest 550,000
and Taxes
700,000
Interest Expense
(10,000)
(50,000
650,000
[195,000)
NI before Tax
540,000
Income Tax
(162,000)
Net Income
378,000
455,000

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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