JKL Manufacturing shows the following data on its 2023 financial statements: Account Amount Accounts receivable, January 1 $850,000 Accounts receivable, December 31 $1,100,000 Merchandise inventory, January 1 $1,200,000 Merchandise inventory, December 31 $1,350,000 Gross sales $5,600,000 Sales returns and allowances $240,000 Net sales $5,360,000 Cost of goods sold $3,850,000 Income before interest and taxes $960,000 Interest on bonds $320,000 Net income $448,000 The times interest earned ratio is: a. 4.25 times per year b. 3.00 times per year c. 2.50 times per year d. 5.00 times per year

JKL Manufacturing shows the following data on its 2023 financial statements: Account Amount Accounts receivable, January 1 $850,000 Accounts receivable, December 31 $1,100,000 Merchandise inventory, January 1 $1,200,000 Merchandise inventory, December 31 $1,350,000 Gross sales $5,600,000 Sales returns and allowances $240,000 Net sales $5,360,000 Cost of goods sold $3,850,000 Income before interest and taxes $960,000 Interest on bonds $320,000 Net income $448,000 The times interest earned ratio is: a. 4.25 times per year b. 3.00 times per year c. 2.50 times per year d. 5.00 times per year

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
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Window World Company's income statement for the year ending December 31, 2024 included the following items: Interest revenue $65,500 Salaries expense 85,000 Cost of goods sold 217,600 The company's comparative balance sheets included the following: 31-Dec-24 31-Dec-23 Interest receivable $9,100 $7,500 Salaries payable 8,900 4,200 Accounts payable 12,700 10,900 Inventory 36,100 32,500 What amount of cash was received for interest revenue during 2024? Select one: $65,500 $63,900 $67,100 $56,400
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