onsider the following: Santos Tier I Center Balance Sheet December 31, 20-- Assets Liabilities Current assets: Current liabilities: Cash $13,125 Accounts payable $10,500 Accounts receivable 18,450 Sales tax payable 825 Merch. inventory 55,950 Wages payable 300 Supplies 2,250 Total current liab. $ 11,625 Prepaid insurance 1,575 Noncurrent liab.: Total current assets $ 91,350 Mortgage payable 13,650 Equipment: Total liabilities $ 25,275 Furniture and fixtures $21,000 Stockholders' Equity Less accum. depr. (6,000) Common stock 40,000 Total equipment 15,000 Retained earnings 41,075 Total liabilities and Total assets $106,350 stockholders' equity $106,350 Additional information: Total stockholders' equity, January 1, 20-- $ 71,250 Accounts receivable, January 1, 20-- 19,650 Net income for 20-- 21,600 Merchandise inventory, January 1, 20-- 60,750 Net credit sales for 20-- 105,000 Required: You have been provided with the balance sheet for Santos Tier I Center. Calculate the following ratios and round answers to two decimal places. a. Current ratio for 20-- ___ to 1 b. Return on stockholders' equity for 20-- _% c. Accounts receivable turnover and average number of days the _ times receivables were on the books for 20-- ___ days

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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onsider the following:

Santos Tier I Center Balance Sheet December 31, 20--
Assets	Liabilities
Current assets:			Current liabilities:
Cash	$13,125		Accounts payable	$10,500
Accounts receivable	18,450		Sales tax payable	825
Merch. inventory	55,950		Wages payable	300
Supplies	2,250		Total current liab.		$ 11,625
Prepaid insurance	1,575		Noncurrent liab.:
Total current assets		$ 91,350	Mortgage payable		13,650
Equipment:			Total liabilities		$ 25,275
Furniture and fixtures	$21,000		Stockholders' Equity
Less accum. depr.	(6,000)		Common stock		40,000
Total equipment		15,000	Retained earnings		41,075
			Total liabilities and
Total assets		$106,350	stockholders' equity		$106,350

Additional information:
Total stockholders' equity, January 1, 20--	$ 71,250
Accounts receivable, January 1, 20--	19,650
Net income for 20--	21,600
Merchandise inventory, January 1, 20--	60,750
Net credit sales for 20--	105,000

Required:
You have been provided with the balance sheet for Santos Tier I Center. Calculate the following ratios and round answers to two decimal places.

a.	Current ratio for 20--	_____ to 1
b.	Return on stockholders' equity for 20--	_____%
c.	Accounts receivable turnover and average number of days the	_____ times
	receivables were on the books for 20--	_____ days
d.	Ratio of liabilities to stockholders' equity for 20--	_____ to 1

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