The financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) are shown. Jackson Enterprises Income Statement For Year Ended December 31, 20-- Revenue from sales: Sales $170,000 Less: Sales returns and allowances 10,000 Net sales $160,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $8,700 Estimated returns inventory, January 1, 20-- 1,300 $10,000 Purchases $92,940 Less: Purchases returns and allowances $1,850 Purchases discounts 1,802 3,652 Net purchases $89,288 Add: Freight-in 913 Cost of goods purchased 90,201 Goods available for sale $100,201 Less: Merchandise inventory, Dec. 31, 20-- $7,300 Estimated returns inventory, Dec. 31, 20-- 1,200 8,500 Cost of goods sold 91,701 Gross profit $68,299 Operating expenses: Wages expense $38,408 Advertising expense 1,102 Supplies expense 390 Phone expense 2,100 Utilities expense 11,320 Insurance expense 950 Depreciation expense—building 4,260 Depreciation expense—equipment 3,706 Miscellaneous expense 532 Total operating expenses 62,768 Income from operations $5,531 Other revenues: Interest revenue $1,816 Other expenses: Interest expense 874 942 Net income $6,473 Jackson Enterprises Statement of Owner's Equity For Year Ended December 31, 20-- J. B. Gray, capital, January 1, 20-- $84,267 Net income for the year $6,473 Less: Withdrawals for the year 5,000 Increase in capital 1,473 J. B. Gray, capital, December 31, 20-- 85,740 Jackson Enterprises Balance Sheet December 31, 20-- Assets Current assets: Cash $20,700 Accounts receivable 18,900 Merchandise inventory 7,300 Estimated returns inventory 1,200 8,500 Supplies 1,400 Prepaid insurance 900 Total current assets $50,400 Property, plant, and equipment: Building $89,000 Less: Accumulated depreciation-building 26,500 $62,500 Equipment $33,500 Less: Accumulated depreciation-equipment 7,900 25,600 Total property, plant, and equipment 88,100 Total assets $138,500 Liabilities Current liabilities: Accounts payable $10,550 Customer refunds payable 1,550 Wages payable 500 Sales tax payable 1,200 Mortgage payable (current portion) 840 Total current liabilities $14,640 Long-term liabilities: Mortgage payable $38,960 Less: Current portion 840 38,120 Total liabilities $52,760 Owner's Equity J. B. Gray, capital 85,740 Total liabilities and owner's equity $138,500 Compute the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,200. Round answers to one decimal place. Jackson Enterprises December 31, 20-- Return on owner's equity _____%? Accounts receivable turnover ______? Average number of days required to collect receivables ______days? Inventory turnover ______? Average number of days required to sell inventory ______days?

The financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) are shown. Jackson Enterprises Income Statement For Year Ended December 31, 20-- Revenue from sales: Sales $170,000 Less: Sales returns and allowances 10,000 Net sales $160,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $8,700 Estimated returns inventory, January 1, 20-- 1,300 $10,000 Purchases $92,940 Less: Purchases returns and allowances $1,850 Purchases discounts 1,802 3,652 Net purchases $89,288 Add: Freight-in 913 Cost of goods purchased 90,201 Goods available for sale $100,201 Less: Merchandise inventory, Dec. 31, 20-- $7,300 Estimated returns inventory, Dec. 31, 20-- 1,200 8,500 Cost of goods sold 91,701 Gross profit $68,299 Operating expenses: Wages expense $38,408 Advertising expense 1,102 Supplies expense 390 Phone expense 2,100 Utilities expense 11,320 Insurance expense 950 Depreciation expense—building 4,260 Depreciation expense—equipment 3,706 Miscellaneous expense 532 Total operating expenses 62,768 Income from operations $5,531 Other revenues: Interest revenue $1,816 Other expenses: Interest expense 874 942 Net income $6,473 Jackson Enterprises Statement of Owner's Equity For Year Ended December 31, 20-- J. B. Gray, capital, January 1, 20-- $84,267 Net income for the year $6,473 Less: Withdrawals for the year 5,000 Increase in capital 1,473 J. B. Gray, capital, December 31, 20-- 85,740 Jackson Enterprises Balance Sheet December 31, 20-- Assets Current assets: Cash $20,700 Accounts receivable 18,900 Merchandise inventory 7,300 Estimated returns inventory 1,200 8,500 Supplies 1,400 Prepaid insurance 900 Total current assets $50,400 Property, plant, and equipment: Building $89,000 Less: Accumulated depreciation-building 26,500 $62,500 Equipment $33,500 Less: Accumulated depreciation-equipment 7,900 25,600 Total property, plant, and equipment 88,100 Total assets $138,500 Liabilities Current liabilities: Accounts payable $10,550 Customer refunds payable 1,550 Wages payable 500 Sales tax payable 1,200 Mortgage payable (current portion) 840 Total current liabilities $14,640 Long-term liabilities: Mortgage payable $38,960 Less: Current portion 840 38,120 Total liabilities $52,760 Owner's Equity J. B. Gray, capital 85,740 Total liabilities and owner's equity $138,500 Compute the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,200. Round answers to one decimal place. Jackson Enterprises December 31, 20-- Return on owner's equity _%? Accounts receivable turnover ? Average number of days required to collect receivables days? Inventory turnover ? Average number of days required to sell inventory ____days?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Financial Ratios

The financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) are shown.

Jackson Enterprises Income Statement For Year Ended December 31, 20--
Revenue from sales:
Sales			$170,000
Less: Sales returns and allowances			10,000
Net sales				$160,000
Cost of goods sold:
Merchandise inventory, January 1, 20--		$8,700
Estimated returns inventory, January 1, 20--		1,300	$10,000
Purchases		$92,940
Less: Purchases returns and allowances	$1,850
Purchases discounts	1,802	3,652
Net purchases		$89,288
Add: Freight-in		913
Cost of goods purchased			90,201
Goods available for sale			$100,201
Less: Merchandise inventory, Dec. 31, 20--		$7,300
Estimated returns inventory, Dec. 31, 20--		1,200	8,500
Cost of goods sold				91,701
Gross profit				$68,299
Operating expenses:
Wages expense			$38,408
Advertising expense			1,102
Supplies expense			390
Phone expense			2,100
Utilities expense			11,320
Insurance expense			950
Depreciation expense—building			4,260
Depreciation expense—equipment			3,706
Miscellaneous expense			532
Total operating expenses				62,768
Income from operations				$5,531
Other revenues:
Interest revenue			$1,816
Other expenses:
Interest expense			874	942
Net income				$6,473

Jackson Enterprises Statement of Owner's Equity For Year Ended December 31, 20--
J. B. Gray, capital, January 1, 20--		$84,267
Net income for the year	$6,473
Less: Withdrawals for the year	5,000
Increase in capital		1,473
J. B. Gray, capital, December 31, 20--		85,740

Jackson Enterprises Balance Sheet December 31, 20--
Assets
Current assets:
Cash		$20,700
Accounts receivable		18,900
Merchandise inventory	7,300
Estimated returns inventory	1,200	8,500
Supplies		1,400
Prepaid insurance		900
Total current assets			$50,400
Property, plant, and equipment:
Building	$89,000
Less: Accumulated depreciation-building	26,500	$62,500
Equipment	$33,500
Less: Accumulated depreciation-equipment	7,900	25,600
Total property, plant, and equipment			88,100
Total assets			$138,500
Liabilities
Current liabilities:
Accounts payable	$10,550
Customer refunds payable	1,550
Wages payable	500
Sales tax payable	1,200
Mortgage payable (current portion)	840
Total current liabilities		$14,640
Long-term liabilities:
Mortgage payable	$38,960
Less: Current portion	840	38,120
Total liabilities			$52,760
Owner's Equity
J. B. Gray, capital			85,740
Total liabilities and owner's equity			$138,500

Compute the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,200.

Round answers to one decimal place.


Jackson Enterprises
December 31, 20--



Return on owner's equity	_____%?
Accounts receivable turnover	______?
Average number of days required to collect receivables	______days?
Inventory turnover	______?
Average number of days required to sell inventory	______days?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.