Solve from the following facts. (Round your answers to the nearest hundredth.) Current assets $ 14,000 Net sales $ 40,000 Accounts receivable $ 5,000 Total assets $ 38,000 Current liabilities $ 20,000 Net income $ 10,100 Inventory $ 4,000 a. Calculate Current ratio. b. Calculate Acid test. c. Calculate Average day’s collection. d. Calculate Asset turnover. e. Calculate Profit margin on sales.
Solve from the following facts. (Round your answers to the nearest hundredth.) Current assets $ 14,000 Net sales $ 40,000 Accounts receivable $ 5,000 Total assets $ 38,000 Current liabilities $ 20,000 Net income $ 10,100 Inventory $ 4,000 a. Calculate Current ratio. b. Calculate Acid test. c. Calculate Average day’s collection. d. Calculate Asset turnover. e. Calculate Profit margin on sales.
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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Solve from the following facts. (Round your answers to the nearest hundredth.)
| Current assets | $ | 14,000 | Net sales | $ | 40,000 | |||
| Accounts receivable | $ | 5,000 | Total assets | $ | 38,000 | |||
| Current liabilities | $ | 20,000 | Net income | $ | 10,100 | |||
| Inventory | $ | 4,000 | ||||||
a. Calculate Current ratio.
b. Calculate Acid test.
c. Calculate Average day’s collection.
d. Calculate Asset turnover.
e. Calculate Profit margin on sales.
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