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Required: 1. Calculate the following risk ratios for 2021 and 2022: (Roundy 2021 2022 Receivables turnover ratio times times Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio

Required: 1. Calculate the following risk ratios for 2021 and 2022: (Roundy 2021 2022 Receivables turnover ratio times times Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio

FINANCIAL ACCOUNTING
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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For the years ended December 31 2022 2021 $11,050,000 6,900,000 4,150,000 Net sales $12,500,000 8,150,000 4,350,000 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses 1,750,000 200,000 55,000 580,000 2,585,000 $ 1,765,000 1,700,000 200,000 55,000 500,000 2,455,000 $ 1,695,000 Net income THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 240,000 1,005,000 1,740,000 145,000 $ 170,000 755,000 1,370,000 115,000 $ 234,000 775,000 1,040,000 90,000 Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation 1,700,000 (750,000) $4,080,000 1,700,000 (550,000) $3,560,000 1,700,000 (350,000) $3,489,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: $ 218,500 5,500 55,000 $ 151,000 $ 139,500 5,500 45,000 50,000 650,000 650,000 650,000 Common stock 750,000 2,401,000 750,000 1,959,000 $3,560,000 750,000 1,899,000 $3,489,000 Retained earnings Total liabilities and stockholders' equity $4,080,000 < Prev 7. of 7 99+ II
Transcribed Image Text:For the years ended December 31 2022 2021 $11,050,000 6,900,000 4,150,000 Net sales $12,500,000 8,150,000 4,350,000 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses 1,750,000 200,000 55,000 580,000 2,585,000 $ 1,765,000 1,700,000 200,000 55,000 500,000 2,455,000 $ 1,695,000 Net income THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 240,000 1,005,000 1,740,000 145,000 $ 170,000 755,000 1,370,000 115,000 $ 234,000 775,000 1,040,000 90,000 Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation 1,700,000 (750,000) $4,080,000 1,700,000 (550,000) $3,560,000 1,700,000 (350,000) $3,489,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: $ 218,500 5,500 55,000 $ 151,000 $ 139,500 5,500 45,000 50,000 650,000 650,000 650,000 Common stock 750,000 2,401,000 750,000 1,959,000 $3,560,000 750,000 1,899,000 $3,489,000 Retained earnings Total liabilities and stockholders' equity $4,080,000 < Prev 7. of 7 99+ II
Required: 1. Calculate the following risk ratios for 2021 and 2022. (Round 2021 2022 Receivables turnover ratio times times Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio earch 99+ II
Transcribed Image Text:Required: 1. Calculate the following risk ratios for 2021 and 2022. (Round 2021 2022 Receivables turnover ratio times times Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio earch 99+ II
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