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...

See similar textbooks

Similar questions

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.
I want to correct answer general accounting question
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
Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020 Accounts receivable (net) $ 20 $ 16 Net sales $ 115 $ 100 Cost of goods sold $ 60 $ 55 Net income $ 20 $ 17 Inventory turnover 5.22 Return on assets 10.3 % Equity multiplier 2.36 Dowling's 2021 average collection period is (rounded)? Show your work. Question 44 options:
ABC company's records included the following, assume 365 days in a year: Accounts Receivable, 12/31/20 $ 860,000 Accounts Receivable, 12/31/19 780,000 Merchandise Inventory, 12/31/20 900,000 Merchandise Inventory, 12/31/19 800,000 Net Sales.during 2020 8,364,000 Cost of Sales during 2020 5,950,000 Compute the inventory turnover for 2020. O7.4 times O 7 times 6.8 times 6.6 times
The following data were obtained from the books of JOYFUL CORPORATION: Accounts receivable, March 31, 2021 – P110,000; Accounts receivable, September 30, 2021 – P130,000; Purchases, March to September 2021 – P450,000; Inventory, March 31, 2021 – P180,000; Average gross profit rate – 40%; Accounts receivable turnover – 6 to 1. The Inventory at September 30, 2021 should be ______. A. 198,000B. 150,000C. 120,000
The income statement of Whitlock Company is presented here. WHITLOCK COMPANYIncome StatementFor the Year Ended November 30, 2020 Sales revenue $7,431,800 Cost of goods sold Beginning inventory $1,880,900 Purchases 4,343,000 Goods available for sale 6,223,900 Ending inventory 1,490,000 Total cost of goods sold 4,733,900 Gross profit 2,697,900 Operating expenses 1,144,400 Net income $1,553,500 Additional information: 1. Accounts receivable increased $190,300 during the year, and inventory decreased $390,900. 2. Prepaid expenses increased $169,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $340,300 during the year. 4. Accrued expenses payable decreased $102,600 during the year. 5. Operating expenses include depreciation expense of $81,900. Prepare the operating activities section of the statement of cash…
Excerpts from Huckabee Company's December 31, 2024 and 2023, financial statements are presented below: 2024 2023 Accounts receivable $ 80,000 $ 72,000 Merchandise inventory 58,000 72,000 Net sales 400,000 372,000 Cost of goods sold 240,000 220,000 Huckabee's 2024 average collection period (rounded) is:
The income statement of Whitlock Company is presented here. WHITLOCK COMPANYIncome StatementFor the Year Ended November 30, 2020 Sales revenue $7,588,000 Cost of goods sold Beginning inventory $1,924,100 Purchases 4,303,700 Goods available for sale 6,227,800 Ending inventory 1,334,300 Total cost of goods sold 4,893,500 Gross profit 2,694,500 Operating expenses 1,077,400 Net income $1,617,100 Additional information: 1. Accounts receivable increased $208,800 during the year, and inventory decreased $589,800. 2. Prepaid expenses increased $167,900 during the year. 3. Accounts payable to suppliers of merchandise decreased $343,500 during the year. 4. Accrued expenses payable decreased $104,000 during the year. 5. Operating expenses include depreciation expense of $83,600. Prepare the operating activities section of the statement of cash flows…
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 %
Hah
The following are selected ledger accounts of Blossom Corporation at December 31, 2020. Cash $247,900 Salaries and wages expense (sales) $380,560 Inventory 716,900 Salaries and wages expense (office) 463,640 Sales revenue 5,728,500 Purchase returns 20,100 Unearned sales revenue 156,780 Sales returns and allowances 105,860 Purchases 3,733,240 Freight-in 96,480 Sales discounts 45,560 Accounts receivable 190,950 Purchase discounts 36,180 Sales commissions 111,220 Selling expenses 92,460 Telephone and Internet expense (sales) 22,780 Accounting and legal services 44,220 Utilities expense (office) 42,880 Insurance expense (office) 32,160 Miscellaneous office expenses 10,720 Advertising expense 72,360 Rent revenue 321,600 Delivery expense 124,620 Casualty loss (before tax) 93,800 Depreciation expense (office equipment) 64,320 Interest expense 235,840 Depreciation expense (sales…