Tabor Company has just prepared the following comparative annual financial statements for the current year:TABOR COMPANYComparative Income StatementFor the Years Ended December 31Sales revenue (one-half on credit)Cost of goods sold.Gross profitExpenses (including $7,200 interest expense each year).Pretax incomeIncome tax expense (30%)Net incomeAssetsCashAccounts receivableInventoryProperty & equipment (net)Total assetsLiabilitiesAccounts payableIncome taxes payableNote payable, long-termStockholders' equityTABOR COMPANYComparative Balance SheetAt December 31Capital stock ($5 par value)Retained earningsTotal liabilities and stockholders' equityCurrent Year Prior Year$ 198,000$ 257,40093,600124,800132,60096,20036,40010,920$ 25,480104,40072,00032,4009,720$ 22,680Current Year$ 51,10061,00028,200103,000$ 243,300$ 43,4002,60056,00098,00043,300$ 243,300Prior Year$ 39,60040,00044,400121,000$ 245,000$ 46,2001,30056,000106,00035,500$ 245,000 Required:1. Using average balances for balance sheet accounts and year-end balances for all income statement accounts, compute thefollowing ratios for the current year: Assume cash flows from operating activities were $17,800 and cash paid for interest was $5,400.Note: Round your intermediate calculations and final answers to 2 decimal places.RATIOTotal asset turnover ratioFixed asset turnover ratioReceivables tumover ratioInventory turnover ratioCurrent ratioQuick ratioCash ratioTimes interest earned ratioCash coverage ratioDebt to equity ratioTABORCOMPANY

Total Asset Turnover Ratio :— It is calculated by dividing net sales by average total assets.…

Tabor Company has just prepared the following comparative annual financial statements for the current year: TABOR COMPANY Comparative Income Statement For the Years Ended December 31 Sales revenue (one-half on credit) Cost of goods sold Gross profit Expenses (including $7,200 interest expense each year). Pretax income Income tax expense (30%) Net income Assets Cash Accounts receivable Inventory Property & equipment (net) Total assets TABOR COMPANY Comparative Balance Sheet At December 31 Liabilities Accounts payable Income taxes payable. Note payable, long-term Stockholders' equity Capital stock ($5 par value) Retained earnings Total liabilities and stockholders' equity Current Year Prior Year $ 198,000 $ 257,400 124,800 93,600 104,400 72,000 32,400 9,720 $ 22,680 Current Year $ 51,100 61,000 28,200 103,000 $ 243,300 $ 43,400 2,600 56,000 98,000 43,300 $ 243,300 132,600 96,200 36,400 10,920 $ 25,480 Prior Year $ 39,600 40,000 44,400 121,000 $ 245,000 $ 46,200 1,300 56,000 106,000 35,500 $ 245,000

Tabor Company has just prepared the following comparative annual financial statements for the current year: TABOR COMPANY Comparative Income Statement For the Years Ended December 31 Sales revenue (one-half on credit) Cost of goods sold Gross profit Expenses (including $7,200 interest expense each year). Pretax income Income tax expense (30%) Net income Assets Cash Accounts receivable Inventory Property & equipment (net) Total assets TABOR COMPANY Comparative Balance Sheet At December 31 Liabilities Accounts payable Income taxes payable. Note payable, long-term Stockholders' equity Capital stock ($5 par value) Retained earnings Total liabilities and stockholders' equity Current Year Prior Year $ 198,000 $ 257,400 124,800 93,600 104,400 72,000 32,400 9,720 $ 22,680 Current Year $ 51,100 61,000 28,200 103,000 $ 243,300 $ 43,400 2,600 56,000 98,000 43,300 $ 243,300 132,600 96,200 36,400 10,920 $ 25,480 Prior Year $ 39,600 40,000 44,400 121,000 $ 245,000 $ 46,200 1,300 56,000 106,000 35,500 $ 245,000

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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