ACC 201 -- Week5 Assignment1 CH-9

# ACC 201 -- Week5 Assignment1 CH-9 - Ratio Analysis 1...

This preview shows pages 1–4. Sign up to view the full content.

Ratio Analysis 1 Chapter 9: 9-23 Ratio Analysis Ashley Dyal ACC 201 Ms. Rayford March 6, 2011

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Ratio Analysis 2 Chapter 9: 9-23 Ratio Analysis Problem 9-23 Use the financial statements for Pocca Company from Problem 9-22 to calculate the following ratios for 2006 and 2005. A. Working capital 2006 - \$576,000 - \$151,800 = \$424,200 2005 - \$516,000 - \$121,000 = 395,000 B. Current Ratio 2006 - \$576,000/\$151,800 = \$3.79 : 1 2005 - \$516,000/\$121,000 = \$4.26 : 1 C. Quick Ratio 2006 - \$90,000/\$151,800 = .6 : 1 2005 - \$64,000/\$121,000 = .5 : 1 D. Acct Receivable Turnover 2006 - \$238,000/\$50,000 = 4.76 times 2005 - \$215,000/\$46,500 = 4.62 times E. Average number of days to collect accounts receivable 2006 - 365/4.76 = 76.68 = 77 days 2005 - 365/4.62 = 79.00 = 79 days F. Inventory Turnover 2006 - \$120,000/\$139,000 = .86 times 2005 - \$103,000/\$141,500 = .73 times
Ratio Analysis 3 G. Average number of days to sell inventory 2006 - 365/.86 = 424.42 = 424 days 2005 - 365/.73 = 500 days H. Debt to assets Ratio

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 04/18/2011 for the course ACC 201 taught by Professor Alao during the Spring '10 term at Ashford University.

### Page1 / 5

ACC 201 -- Week5 Assignment1 CH-9 - Ratio Analysis 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online