Selected figures from the Balance Sheet and Income Statement of Turner's Toys, Inc. are shownbelow. (Compute answer to two decimal places.)From the Balance SheetFrom the Income StatementCash$210,734Net Sales$244,750Accounts Receivable$138,126Cost of Goods Sold$190,000Merchandise Inventory:Net Income$ 26,406End of this year$184,500End of last year$178,300Total Current Assets$533,360Total Current Liabilities.$324,152Total Stockholders' Equity$149,208Refer to Turner's Toys, Inc. Compute the relationship of net income to net sales. Express youranswer as a percentage.

Computation of net profit margin ratio:

Answered: Selected figures from the Balance Sheet…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The 2021 Income statement of Adrian Express reports sales of $16,932,000, cost of goods sold of $10,363,500, and net income of $1,630,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: $ 630,000 $ 790,000 Cash Accounts receivable Inventory 1,460,000 1,860,000 4,830,000 $8,780,000 $7,520,000 1,030,000 1,430,000 4, 270,000 Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities $1,990,000 $1,690,000 2,330,000 1,970,000 2,490,000 2,430,000 1,970, 000 1,430,000 Common stock Retained earnings Total liabilities and stockholders' equity $8,780,000 $7,520,000 Industry averages for the following four risk ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio 25 days 60 days 2 to 1 50% Requlred: 1. Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days…
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