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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...
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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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