164412 accounting Homework.xlsx

164412 accounting Homework.xlsx - 1 Quick Ratio Quick...

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1) Quick Ratio Quick Assets 205,000 Current Liabilities 170,000 2) Current Ratio Current Assets 375,000 Current Liabilities 170,000 3) Working Capital Current Assets - Current Liabilities 375,000-170,000 Currents Assets Currents Liabilities Cash 45,000 Accounts Payable Accounts Receivable 160,000 Accured Expenses Inventories 150,000 Total Current Liabilities Prepaid Expenses 20,000 Total Current Assets 375,000
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1.2 2.2 205,000 Quick Assets 95,000 Cash 45,000 75,000 Accounts Receivable 160,000 170,000 Total Quick Assets 205,000
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Net Sales 950,000 Net Income 65,000 Income Tax Paid 30,000 Interest Expenses 15,000 1) Times Interest Earned Ratio Interest Before Interest and Taxes 55,000 + 10,000 + 25,000 Interest Expenses 15,000 2) Profit Margin Net Profit 65,000 Net Sales 950,000
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110,000 7 times 15,000 6.8%
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Item/Account 2017 2016 Accounts Receivable 9,800 9,400 Inventory 25,000 16,000 Net Sales (all credit) 80,000 71,000 Cost of Goods Sold 49,000 52,000 Net Income 7,200 6,900 1) Inventory turnover ratio Cost of Goods Sold 49,000 2.4 Average Inventory 20,500 Average Inventory (25,000 + 16,000)/2 20,500 2( Number of Days in Inventory 365 365 152.7 Inventory turnover ratio 2.4 3) Gross Profit Margin Gross Profit 31,000 38.8% Net Sales 80,000 4) Profit Margin Net Profit 7,200 9.0% Net Sales 80,000
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Times Days
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Item/Account 2017 2016 Accounts Receivable $9,800 $9,400 Inventory 20,000 16,000
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