10The following information is reported on the financial statements of Speed Cycles, Inc. as of December 31, 2023:8Net salesGross profit$430,000267,00012 Accounts receivable3 Inventory45 Calculate the following ratios. (Hint: Your formulas should include the AVERAGE function.)16Receivables turnover ratioInventory turnover ratiotimestimesDecember 31, 2022 December 31, 2023$172,000120,400$206,00096,300

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Description: 10The following information is reported on the financial statements of Speed Cycles, Inc. as of December 31, 2023:8Net salesGross profit$430,000267,00012 Accounts receivable3 Inventory45 Calculate the following ratios. (Hint: Your formulas should in

In order to calculate the ratios, we would use the following formula

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The following information is reported on the financial statements of Speed Cycles, Inc. as of December 31, 2023 Net sales Gross profit Accounts receivable Inventory $430,000 267,000 December 31, 2022 $172,000 120,400 December 31, 2023 $206,000 96,300 Calculate the following ratios. (Hint: Your formulas should include the AVERAGE function.) Receivables turnover ratio times Inventory turnover ratio times

The following information is reported on the financial statements of Speed Cycles, Inc. as of December 31, 2023 Net sales Gross profit Accounts receivable Inventory $430,000 267,000 December 31, 2022 $172,000 120,400 December 31, 2023 $206,000 96,300 Calculate the following ratios. (Hint: Your formulas should include the AVERAGE function.) Receivables turnover ratio times Inventory turnover ratio times

Managerial Accounting: The Cornerstone of Business Decision-Making

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Chapter15: Financial Statement Analysis

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Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.

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1
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The following information is reported on the financial statements of Speed Cycles, Inc. as of December 31, 2023:
8
Net sales
Gross profit
$430,000
267,000
1
2 Accounts receivable
3 Inventory
4
5 Calculate the following ratios. (Hint: Your formulas should include the AVERAGE function.)
16
Receivables turnover ratio
Inventory turnover ratio
times
times
December 31, 2022 December 31, 2023
$172,000
120,400
$206,000
96,300

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