The balance sheet and income statement data for XYZ Corporation appear below. Assets Current assets Cash XYZ INC. Balance Sheets December 31,2020 Short-term Investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' Equity Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2020 2019 60,100 64,200 69,000 50,000 107,800 102,800 133,000 115,500 369,900 332,500 600,300 520,300 $970,200 $852,800 203,500 187,400 200,000 200,000 403.500 387.400 280,000 286,700 566,700 $970,200 300,000 165,400 465,400 $852,800 (Time: 35-40 minutes) XYZ INC. Income Statement For the year ended December 31,2020 2020 Net Sales Cost of goods sold Gross Profit Selling and Administrative expenses Income from Operation Other expenses and loses: Interest expenses Income before income taxes Income tax expense Net income Additional information: a. The market price of XYZ's common stock was OMR 25 for 2020. b. All dividends of OMR 77,700 in 2020 are paid in cash. Requirements: Compute the following ratios for 2020. Show all your calculation and workings. (1) Acid-test Ratio. (2) Receivable turnover. 2019 1,818,500 1,750,500 1,011,500 996,000 807,000 754,500 506,000 479,000 301,000 275,500 14,000 261,500 84,000 77,000 $199.000 $184.500 18,000 283,000
The balance sheet and income statement data for XYZ Corporation appear below. Assets Current assets Cash XYZ INC. Balance Sheets December 31,2020 Short-term Investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' Equity Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2020 2019 60,100 64,200 69,000 50,000 107,800 102,800 133,000 115,500 369,900 332,500 600,300 520,300 $970,200 $852,800 203,500 187,400 200,000 200,000 403.500 387.400 280,000 286,700 566,700 $970,200 300,000 165,400 465,400 $852,800 (Time: 35-40 minutes) XYZ INC. Income Statement For the year ended December 31,2020 2020 Net Sales Cost of goods sold Gross Profit Selling and Administrative expenses Income from Operation Other expenses and loses: Interest expenses Income before income taxes Income tax expense Net income Additional information: a. The market price of XYZ's common stock was OMR 25 for 2020. b. All dividends of OMR 77,700 in 2020 are paid in cash. Requirements: Compute the following ratios for 2020. Show all your calculation and workings. (1) Acid-test Ratio. (2) Receivable turnover. 2019 1,818,500 1,750,500 1,011,500 996,000 807,000 754,500 506,000 479,000 301,000 275,500 14,000 261,500 84,000 77,000 $199.000 $184.500 18,000 283,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The balance sheet and income statement data for XYZ Corporation appear below.
Assets
Current assets
Cash
XYZ INC.
Balance Sheets
December 31,2020
Short-term Investments
Accounts receivable (net)
Inventory
Total current assets
Plant assets (net)
Total assets
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Stockholders' Equity
Common stock, $5 par
Retained earnings
Total stockholders' equity
Total liabilities and
stockholders' equity
2020
2019
60,100 64,200
69,000 50,000
107,800 102,800
133,000 115,500
369,900 332,500
600,300 520,300
$970,200 $852.800
203,500 187,400
200,000 200,000
403.500 387.400
280,000
286,700
566,700 465,400
$970,200
$852,800
300,000
165,400
XYZ INC.
Income Statement
For the year ended December 31,2020
2020
(Time: 35-40 minutes)
Net Sales
Cost of goods sold
Gross Profit
Selling and Administrative
expenses
Income from Operation
Other expenses and loses:
Interest expenses
Income before income taxes
Income tax expense
Net income
Additional information:
a. The market price of XYZ's common stock was OMR 25 for 2020.
b. All dividends of OMR 77,700 in 2020 are paid in cash.
Requirements:
Compute the following ratios for 2020. Show all your calculation and workings.
(1) Acid-test Ratio.
(2) Receivable turnover.
2019
1,818,500 1,750,500
1,011,500 996,000
807,000 754,500
506,000 479,000
301,000 275,500
18,000
14,000
283,000
261,500
84,000
77,000
$199,000 $184.500
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