Net income. $ 52,250 Sales (all on credit). 295,000 Cost of goods sold.. 123,000. Interest expense. 15,600 Income tax expense... 17,450 Tax rate = 26% Required: From the above information, calculate the following ratios for 2020: Ratio Amount 1.Inventory turnover
Net income. $ 52,250 Sales (all on credit). 295,000 Cost of goods sold.. 123,000. Interest expense. 15,600 Income tax expense... 17,450 Tax rate = 26% Required: From the above information, calculate the following ratios for 2020: Ratio Amount 1.Inventory turnover
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Net income....
$ 52,250
Sales (all on credit)..
295,000
Cost of goods sold...
123,000.
Interest expense...
15,600
Income tax expense....
17,450
Tax rate = 26%
%3D
Required:
From the above information, calculate the following ratios for 2020:
Ratio
Amount
1.Inventory turnover](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc63e179b-c5e2-4a1c-8139-e71bb775ae2e%2F3469bae0-f2c0-463f-ba3f-53388a350a95%2Fvtfd52_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Net income....
$ 52,250
Sales (all on credit)..
295,000
Cost of goods sold...
123,000.
Interest expense...
15,600
Income tax expense....
17,450
Tax rate = 26%
%3D
Required:
From the above information, calculate the following ratios for 2020:
Ratio
Amount
1.Inventory turnover
![The following information is taken from Randy Technology's statements of financial position at
December 31, 2019 and 2020, and their income statement for calendar 2020:
2020
2019
Assets:
Cash ...
$ 38,000
$ 42,000
Short Term investments
25,000
-0-
Accounts receivable..
118,000
22,000
Inventory..
151,000
42,000
Prepaid insurance
16,000
19,000
Long-term investments
49,000
20,000
Equipment (net)..
130,000
130,000
Land..
33,000
33,000
Goodwill
45,000
45,000
Total assets..
$ 605,000
S 353,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc63e179b-c5e2-4a1c-8139-e71bb775ae2e%2F3469bae0-f2c0-463f-ba3f-53388a350a95%2Fqiddao5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information is taken from Randy Technology's statements of financial position at
December 31, 2019 and 2020, and their income statement for calendar 2020:
2020
2019
Assets:
Cash ...
$ 38,000
$ 42,000
Short Term investments
25,000
-0-
Accounts receivable..
118,000
22,000
Inventory..
151,000
42,000
Prepaid insurance
16,000
19,000
Long-term investments
49,000
20,000
Equipment (net)..
130,000
130,000
Land..
33,000
33,000
Goodwill
45,000
45,000
Total assets..
$ 605,000
S 353,000
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