Current Attempt in Progress XYZ provided the following financial information:XYZBalance SheetAs of 12/31/19Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402and net sales of: $4,272,431Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g. 52.75.):Current Ratio ? timesQuick Ratio ?timesAverage Collection Period ?daysTotal Asset Turnover ?timesFixed Asset Turnover ?times

Ratio analysis helps to analyze the financial statements of the company. The management can take decisions on the basis of these ratios. It is also helpful to compare two or more financial statements. “Since you have posted a question with multiple sub-parts, we will solve the first three subparts for you. To get the remaining sub-part solved please repost the complete question andmention the sub-parts to be solved.” Current ratio = Current assets / Current liabilities Current ratio =383,374 / 176,115 = 2.176 or 2.18: 1 Quick ratio = ( Current assets - Inventory ) / Current liabilities = ( 383,374 - 212,379) / 176,115 = 0.9709 or 0.97 : 1 Average collection period = Account receivable / Net credit sales * 365 = 143,519 / 4,272,431 * 365 = 12.26 Days

Answered: XYZ provided the following financial…

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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Current Attempt in Progress

XYZ provided the following financial information:

XYZ Balance Sheet As of 12/31/19
Assets:		Liabilities and Equity:
Cash and marketable securities	$27,476	Accounts payable and accruals	$154,860
Accounts receivable	$143,519	Short-term notes payable	$21,255
Inventory	$212,379	Total current liabilities	$176,115
Total current assets	$383,374	Long term debt	$155,510
Net plant and equipment	$602,704	Total liabilities	$331,625
Goodwill and other assets	$42,422	Common stock	$312,719
		Retained earnings	$384,156
Total assets	$1,028,500	Total liabilities and equity	$1,028,500

In addition, it was reported that the firm had a net income of:		$158,402
and net sales of:		$4,272,431

Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g. 52.75.):

Current Ratio	?	times
Quick Ratio	?	times
Average Collection Period	?	days
Total Asset Turnover	?	times
Fixed Asset Turnover	?	times

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