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What is the inventory turnover? What type of analysis is it, liquidity, profitability, or Solvency? What does it tell us? (Begining of inventory was $18,100)

What is the inventory turnover? What type of analysis is it, liquidity, profitability, or Solvency? What does it tell us? (Begining of inventory was $18,100)

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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What is the inventory turnover? What type of analysis is it, liquidity, profitability, or Solvency? What does it tell us? (Begining of inventory was $18,100)
New York Bakery Balance Sheet December 2019 Assets Current assets Cash 50,180.74 Accounts receivable $ 951,766.20 Raw materials 24 Finished goods inventory 38.467.89 18,522.00 O Total current assets 1 Deferred tax asset 2 Property, Plant, & Equipment $ 1,058,936.83 Land 24 76,000.00 Building 567,000.00 Equipment $ 1,010,000.00 $ (141.200.00) Accumulated Depr - Equip 7 Total PPE $ 1,511.800.00 $ 2,570,736.83 B Total assets Liabilities and Stockholders'Equity 1 Current liabilities Accounts payable 45,255.13 As Line of credit payable Taxes payable 5,087.17 9,342.24 Ex 4. 5 Total current liabilities 59,684.54 6 Long term liabilities Mortgage payable (current) $ 1,096,262.57 8 Total long term liabilities 9 Total liabilities o Stockholders' equity $ 1,096,262.57 $ 1,155,947.11 Common stock (no-par, 200,000 share outstanding $550,000.00 Retained earnings 850,113.00 3 Total stockholders' equity 34 Total liabilities and stockholders' equity $1.400,113.00 $ 2,556,060.11
Transcribed Image Text:New York Bakery Balance Sheet December 2019 Assets Current assets Cash 50,180.74 Accounts receivable $ 951,766.20 Raw materials 24 Finished goods inventory 38.467.89 18,522.00 O Total current assets 1 Deferred tax asset 2 Property, Plant, & Equipment $ 1,058,936.83 Land 24 76,000.00 Building 567,000.00 Equipment $ 1,010,000.00 $ (141.200.00) Accumulated Depr - Equip 7 Total PPE $ 1,511.800.00 $ 2,570,736.83 B Total assets Liabilities and Stockholders'Equity 1 Current liabilities Accounts payable 45,255.13 As Line of credit payable Taxes payable 5,087.17 9,342.24 Ex 4. 5 Total current liabilities 59,684.54 6 Long term liabilities Mortgage payable (current) $ 1,096,262.57 8 Total long term liabilities 9 Total liabilities o Stockholders' equity $ 1,096,262.57 $ 1,155,947.11 Common stock (no-par, 200,000 share outstanding $550,000.00 Retained earnings 850,113.00 3 Total stockholders' equity 34 Total liabilities and stockholders' equity $1.400,113.00 $ 2,556,060.11
New York Bakery Income Statement For the Year Ended December 31, 2019 Sales $ 4,173,100.00 Cost of goods sold $2,937,641.56 Gross margin $ 1,235.458.44 Selling and administrative expense 842,584.40 Earnings before interest and tax Interest expense $ 392,874.04 78.113.40 Tаx expense 2$ 16,500.00 Net income 298.260.64 1. No preferred dividends were declared. 2. Market Price for Common Stock $4 19.75 3. Shares Outstanding 200,000
Transcribed Image Text:New York Bakery Income Statement For the Year Ended December 31, 2019 Sales $ 4,173,100.00 Cost of goods sold $2,937,641.56 Gross margin $ 1,235.458.44 Selling and administrative expense 842,584.40 Earnings before interest and tax Interest expense $ 392,874.04 78.113.40 Tаx expense 2$ 16,500.00 Net income 298.260.64 1. No preferred dividends were declared. 2. Market Price for Common Stock $4 19.75 3. Shares Outstanding 200,000
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