Selected financial data for Amberjack Corporation follows. Year 1 ($ thousands) Year 2 ($ thousands) Sales 277,161 465,381 255,211 (161,064) (59,635) 341,780 342,506 21,737 6,551 Cost of goods sold Net income 347,324 (404,109) (21,383) 269,622 37,500 36,048 72,706 Cash flow from operations Cash Marketable securities Accounts receivable Inventories 415,876 23,358 Total current assets 712,574 29,508 45,054 74,562 Accounts payable Accrued liabilities 125,451 148,809 Total current liabilities a. Calculate the current and quick ratio at the end of each year. Note: Round your answers to 1 decimal place. b. Assuming a 365-day year for all calculations, compute the following: i. The collection period each year based on sales.
Selected financial data for Amberjack Corporation follows. Year 1 ($ thousands) Year 2 ($ thousands) Sales 277,161 465,381 255,211 (161,064) (59,635) 341,780 342,506 21,737 6,551 Cost of goods sold Net income 347,324 (404,109) (21,383) 269,622 37,500 36,048 72,706 Cash flow from operations Cash Marketable securities Accounts receivable Inventories 415,876 23,358 Total current assets 712,574 29,508 45,054 74,562 Accounts payable Accrued liabilities 125,451 148,809 Total current liabilities a. Calculate the current and quick ratio at the end of each year. Note: Round your answers to 1 decimal place. b. Assuming a 365-day year for all calculations, compute the following: i. The collection period each year based on sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Selected financial data for Amberjack Corporation follows.
Year 1 ($
thousands)
277,161
Year 2 ($
thousands)
465,381
347,324
(404,109)
(21,383)
269,622
Sales
255,211
(161,064)
(59,635)
341,780
342,506
21,737
Cost of goods sold
Net income
Cash flow from operations
Cash
Marketable securities
37,500
36,048
72,706
415,876
Accounts receivable
Inventories
6,551
Total current assets
712,574
Accounts payable
29,508
45,054
74,562
23,358
125,451
148,809
Accrued liabilities
Total current liabilities
a. Calculate the current and quick ratio at the end of each year.
Note: Round your answers to 1 decimal place.
b. Assuming a 365-day year for all calculations, compute the following:
i. The collection period each year based on sales.
ii. The inventory turnover and the payables period each year based on cost of goods sold.
iii. The days' sales in cash each year.
iv. The gross margin and profit margin each year.
Note: Round your answers to 1 decimal place. Negative answers should be indicated by parentheses.
Year 1
Year 2
1. Current ratio
1. Quick ratio
2a. Collection period
2b. Inventory turnover (X)
2b. Payables period (days)
2c. Days' sales in cash
2d. Gross margin
%
%
2d. Profit margin
%
%
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