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The current year income statement of a company reported net sales of $8 million, cost of goods sold of $5.1 million, and net income of $815,000. The following table shows the company's comparative balance sheets for the current year and the previous year: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands Current Year Previous Year times times days times $360 760 1,050 2,700 $4,870 Required: 1. Calculate the company's turnover ratios for the current year. Note: Use 365 days a year. Round your answers to 2 decimal places. $ 1,020 1,350 1,300 1,200 $ 4,870 $ 440 530 850 2,420 $ 4,240 $ 890 1,350 1,300 700 $ 4,240 Gad

The current year income statement of a company reported net sales of $8 million, cost of goods sold of $5.1 million, and net income of $815,000. The following table shows the company's comparative balance sheets for the current year and the previous year: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands Current Year Previous Year times times days times $360 760 1,050 2,700 $4,870 Required: 1. Calculate the company's turnover ratios for the current year. Note: Use 365 days a year. Round your answers to 2 decimal places. $ 1,020 1,350 1,300 1,200 $ 4,870 $ 440 530 850 2,420 $ 4,240 $ 890 1,350 1,300 700 $ 4,240 Gad

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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The current year income statement of a company reported net sales of $8 million, cost of goods sold of $5.1 million, and net income of $815,000. The following table shows the company's comparative balance sheets for the current year and the previous year: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands) Current Year Previous Year times times days times $ 360 760 Required: 1. Calculate the company's turnover ratios for the current year. Note: Use 365 days a year. Round your answers to 2 decimal places. 1,050 2,700 $ 4,870 $ 1,020 1,350 1,300 1,200 $ 4,870 $ 440 530 850 2,420 $ 4,240 $ 890 1,350 1,300 700 $ 4,240
Transcribed Image Text:The current year income statement of a company reported net sales of $8 million, cost of goods sold of $5.1 million, and net income of $815,000. The following table shows the company's comparative balance sheets for the current year and the previous year: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands) Current Year Previous Year times times days times $ 360 760 Required: 1. Calculate the company's turnover ratios for the current year. Note: Use 365 days a year. Round your answers to 2 decimal places. 1,050 2,700 $ 4,870 $ 1,020 1,350 1,300 1,200 $ 4,870 $ 440 530 850 2,420 $ 4,240 $ 890 1,350 1,300 700 $ 4,240
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