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The average sale period. (The inventory at the beginning of last year totaled$1,920,000.) f. The operating cycle. g. The total asset turnover. (The total assets at the beginning of last year totaled$12,960,000.)

The average sale period. (The inventory at the beginning of last year totaled$1,920,000.) f. The operating cycle. g. The total asset turnover. (The total assets at the beginning of last year totaled$12,960,000.)

FINANCIAL ACCOUNTING
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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e. The average sale period. (The inventory at the beginning of last year totaled$1,920,000.)

f. The operating cycle.

g. The total asset turnover. (The total assets at the beginning of last year totaled$12,960,000.)

Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Lydex Company Comparative Balance Sheet Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $78 par value Retained earnings This Year $ 960,000 $ 1,260,000 300,000 2,700,000 1,800,000 3,900,000 2,400,000 240,000 180,000 7,800,000 5,940,000 9,300,000 8,940,000 $17,100,000 $14,880,000 0 $ 3,900,000 3,600,000 7,500,000 Last Year 7,800,000 1,800,000 Total stockholders' equity 9,600,000 Total liabilities and stockholders' equity $17,100,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,320,000 9,120,000 $14,880,000
Transcribed Image Text:Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Lydex Company Comparative Balance Sheet Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $78 par value Retained earnings This Year $ 960,000 $ 1,260,000 300,000 2,700,000 1,800,000 3,900,000 2,400,000 240,000 180,000 7,800,000 5,940,000 9,300,000 8,940,000 $17,100,000 $14,880,000 0 $ 3,900,000 3,600,000 7,500,000 Last Year 7,800,000 1,800,000 Total stockholders' equity 9,600,000 Total liabilities and stockholders' equity $17,100,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,320,000 9,120,000 $14,880,000
Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year Last Year $15,750,000 $12,480,000 12,600,000 9,900,000 3,150,000 2,580,000 1,590,000 1,560,000 1,560,000 1,020,000 360,000 300,000 1,200,000 720,000 360,000 216,000 840,000 504,000 360,000 252,000 480,000 252,000 1,320,000 1,068,000 $1,800,000 $1,320,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 2.3 1.2 30 days 60 days 9.5% 0.65 5.7 10
Transcribed Image Text:Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year Last Year $15,750,000 $12,480,000 12,600,000 9,900,000 3,150,000 2,580,000 1,590,000 1,560,000 1,560,000 1,020,000 360,000 300,000 1,200,000 720,000 360,000 216,000 840,000 504,000 360,000 252,000 480,000 252,000 1,320,000 1,068,000 $1,800,000 $1,320,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 2.3 1.2 30 days 60 days 9.5% 0.65 5.7 10
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