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The 2024 income statement of Anderson Medical Supply Company reported net sales of $13 million, cost of goods sold of $6.3 million, and net income of $875,000. The following table shows the company's comparative balance sheets for 2024 and 2023: Assets Cash Accounts receivable. Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio times times (5 in thousands) 2024 days times $ 600 1,000 1,650 3,900 $ 7,150 $ 1,260 Required: 1. Calculate Anderson's turnover ratios for 2024. Note: Use 365 days a year. Round your answers to 2 decimal places. 1,950. 2,500 1,440 $7,150 2023 $ 680 650 1,060 3,620 $ 6,010 $ 1,130. 1,950 2,500 430 $ 6,010

The 2024 income statement of Anderson Medical Supply Company reported net sales of $13 million, cost of goods sold of $6.3 million, and net income of $875,000. The following table shows the company's comparative balance sheets for 2024 and 2023: Assets Cash Accounts receivable. Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio times times (5 in thousands) 2024 days times $ 600 1,000 1,650 3,900 $ 7,150 $ 1,260 Required: 1. Calculate Anderson's turnover ratios for 2024. Note: Use 365 days a year. Round your answers to 2 decimal places. 1,950. 2,500 1,440 $7,150 2023 $ 680 650 1,060 3,620 $ 6,010 $ 1,130. 1,950 2,500 430 $ 6,010

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The 2024 income statement of Anderson Medical Supply Company reported net sales of $13 million, cost of goods sold of $6.3 million, and net income of $875,000. The following table shows the company's comparative balance sheets for 2024 and 2023: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio (5 in thousands) 2024 2023 times times days times $ 600 1,000 1,650 3,900 $ 7,150 Required: 1. Calculate Anderson's turnover ratios for 2024. Note: Use 365 days a year. Round your answers to 2 decimal places. $1,260 1,950. 2,500 1,440 $7,150 $ 680 650 1,060 3,620 $ 6,010 $ 1,130 1,950 2,500 430 $ 6,010
Transcribed Image Text:The 2024 income statement of Anderson Medical Supply Company reported net sales of $13 million, cost of goods sold of $6.3 million, and net income of $875,000. The following table shows the company's comparative balance sheets for 2024 and 2023: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio (5 in thousands) 2024 2023 times times days times $ 600 1,000 1,650 3,900 $ 7,150 Required: 1. Calculate Anderson's turnover ratios for 2024. Note: Use 365 days a year. Round your answers to 2 decimal places. $1,260 1,950. 2,500 1,440 $7,150 $ 680 650 1,060 3,620 $ 6,010 $ 1,130 1,950 2,500 430 $ 6,010
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