Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 2019 Cash $ 16,000 $ 30,000 Accounts receivable (net) 70,000 59,000 Inventory 59,000 49,000 Plant assets (net) 200,000 179,000 $345,000 $317,000 Accounts payable $50,000 $59,000 Mortgage payable (15%) 106,500 106,500 Common stock, $10 par 142,000 125,000 Retained earnings 46,500 26,500 $345,000 $317,000 Additional information for 2020: 1. Net income was $25,600. 2. Sales on account were $406,800. Sales returns and allowances amounted to $19,800. 3. Cost of goods sold was $199,800. 4. Net cash provided by operating activities was $45,700. 5. Capital expenditures were $23,600, and cash dividends were $10,200. Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.) (a) Current ratio enter the Current ratio rounded to 2 decimal places :1 (b) Accounts receivable turnover enter the Accounts receivable turnover rounded to 1 decimal place times (c) Average collection period enter the Average collection period rounded to 1 decimal place days (d) Inventory turnover enter the Inventory turnover rounded to 1 decimal place times (e) Days in inventory enter the Days in inventory rounded to 1 decimal place days (f) Free cash flow $enter a dollar amount
Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 2019 Cash $ 16,000 $ 30,000 Accounts receivable (net) 70,000 59,000 Inventory 59,000 49,000 Plant assets (net) 200,000 179,000 $345,000 $317,000 Accounts payable $50,000 $59,000 Mortgage payable (15%) 106,500 106,500 Common stock, $10 par 142,000 125,000 Retained earnings 46,500 26,500 $345,000 $317,000 Additional information for 2020: 1. Net income was $25,600. 2. Sales on account were $406,800. Sales returns and allowances amounted to $19,800. 3. Cost of goods sold was $199,800. 4. Net cash provided by operating activities was $45,700. 5. Capital expenditures were $23,600, and cash dividends were $10,200. Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.) (a) Current ratio enter the Current ratio rounded to 2 decimal places :1 (b) Accounts receivable turnover enter the Accounts receivable turnover rounded to 1 decimal place times (c) Average collection period enter the Average collection period rounded to 1 decimal place days (d) Inventory turnover enter the Inventory turnover rounded to 1 decimal place times (e) Days in inventory enter the Days in inventory rounded to 1 decimal place days (f) Free cash flow $enter a dollar amount
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 16E
Related questions
Question
Lendell Company has these comparative
Lendell Company
Balance Sheets December 31 |
||||||
---|---|---|---|---|---|---|
2020
|
2019
|
|||||
Cash | $ 16,000 | $ 30,000 | ||||
70,000 | 59,000 | |||||
Inventory | 59,000 | 49,000 | ||||
Plant assets (net) | 200,000 | 179,000 | ||||
$345,000 | $317,000 | |||||
Accounts payable | $50,000 | $59,000 | ||||
Mortgage payable (15%) | 106,500 | 106,500 | ||||
Common stock, $10 par | 142,000 | 125,000 | ||||
46,500 | 26,500 | |||||
$345,000 | $317,000 |
Additional information for 2020:
1. | Net income was $25,600. | |
2. | Sales on account were $406,800. Sales returns and allowances amounted to $19,800. | |
3. | Cost of goods sold was $199,800. | |
4. | Net cash provided by operating activities was $45,700. | |
5. | Capital expenditures were $23,600, and cash dividends were $10,200. |
Compute the following ratios at December 31, 2020. (Round
(a) | Current ratio | enter the Current ratio rounded to 2 decimal places | :1 | ||
---|---|---|---|---|---|
(b) | Accounts receivable turnover | enter the Accounts receivable turnover rounded to 1 decimal place | times | ||
(c) | Average collection period | enter the Average collection period rounded to 1 decimal place | days | ||
(d) | Inventory turnover | enter the Inventory turnover rounded to 1 decimal place | times | ||
(e) | Days in inventory | enter the Days in inventory rounded to 1 decimal place | days | ||
(f) | $enter a dollar amount |
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Fundamentals Of Financial Management, Concise Edi…](https://www.bartleby.com/isbn_cover_images/9781337902571/9781337902571_smallCoverImage.jpg)
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Fundamentals Of Financial Management, Concise Edi…](https://www.bartleby.com/isbn_cover_images/9781337902571/9781337902571_smallCoverImage.jpg)
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning