The following information pertains to Irithel Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.What is the asset turnover for 2021? The following information pertains to Trithel Company. Assume that all balance sheet amounts represent both average and endingbalance figures. Assume that all sales were on credit.Net SalesCost of Goods SoldGross ProfitSelling and Administrative ExpensesIncome from operationsInterest expensesIncome before income taxesIncome tax expenseNet incomeCashShort-term investmentsAccounts receivable (net)InventoryPlant assetsTotal assetsAccounts payableIncome taxes payableBonds payableCommon stock (P5 par)Retained earningsTotal liabilitiesAssetsIrithel CompanyIncome StatementFor the Year Ended December 31, 20212021Liabilities and EquityIrithel CompanyBalance SheetAs of December 31, 2021Financial RatiosCurrent ratioDays sales outstanding using a 365-day year (collection period)Inventory turnoverXXXXXX815,265(514,265)301,0002021(18,000)283,000(84,000)199,00060,570XXX107,800133,000XXX970,200160,00043500XXX280,000286,700XXX2020XXXXXX754,500(479,000)275,5002020(14,000)261,500(77,000)184,50064,20050,000102,800115,500XXX852,800145,40042,000200,000300,000165,400852,8001.8221.1 days8.1 times

Asset turnover ratio: It is the ratio between the company’s sales and the total assets. This is the…

Answered: What is the asset turnover for 2021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following information pertains to Irithel Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

What is the asset turnover for 2021?

The following information pertains to Trithel Company. Assume that all balance sheet amounts represent both average and ending
balance figures. Assume that all sales were on credit.
Net Sales
Cost of Goods Sold
Gross Profit
Selling and Administrative Expenses
Income from operations
Interest expenses
Income before income taxes
Income tax expense
Net income
Cash
Short-term investments
Accounts receivable (net)
Inventory
Plant assets
Total assets
Accounts payable
Income taxes payable
Bonds payable
Common stock (P5 par)
Retained earnings
Total liabilities
Assets
Irithel Company
Income Statement
For the Year Ended December 31, 2021
2021
Liabilities and Equity
Irithel Company
Balance Sheet
As of December 31, 2021
Financial Ratios
Current ratio
Days sales outstanding using a 365-day year (collection period)
Inventory turnover
XXX
XXX
815,265
(514,265)
301,000
2021
(18,000)
283,000
(84,000)
199,000
60,570
XXX
107,800
133,000
XXX
970,200
160,000
43500
XXX
280,000
286,700
XXX
2020
XXX
XXX
754,500
(479,000)
275,500
2020
(14,000)
261,500
(77,000)
184,500
64,200
50,000
102,800
115,500
XXX
852,800
145,400
42,000
200,000
300,000
165,400
852,800
1.82
21.1 days
8.1 times

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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