Net income....$ 52,250Sales (all on credit)..295,000Cost of goods sold...123,000.Interest expense...15,600Income tax expense....17,450Tax rate = 26%%3DRequired:From the above information, calculate the following ratios for 2020:RatioAmount1.Inventory turnover The following information is taken from Randy Technology's statements of financial position atDecember 31, 2019 and 2020, and their income statement for calendar 2020:20202019Assets:Cash ...$ 38,000$ 42,000Short Term investments25,000-0-Accounts receivable..118,00022,000Inventory..151,00042,000Prepaid insurance16,00019,000Long-term investments49,00020,000Equipment (net)..130,000130,000Land..33,00033,000Goodwill45,00045,000Total assets..$ 605,000S 353,000

Average Inventory = Opening Inventory + Closing Inventory 2…

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

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

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

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