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Question

67606782_2637269746285733_2819616136851619840_n.jpg

How do I get

the following risk ratios for 2021?


67501211_2444877405778964_2052050939266727936_n.jpg

67501211_2444877405778964_2052050939266727936_n.jpg

Common stock
307,600
307,060
Retained earnings
234,300
136,440
Total liabilities and stockholders' equity
$932,200
$/81,840
Required:
Assuming that all sales were on account, calculate the following risk ratios for 2021, (Use 365 days a year, Round your final answers to 1 decimal place.)
Risk Ratios
Receivables turnover ratio
times
Average collection period
days
Inventory turnover ratio
times
Average days in inventory
days
Current ratio
10 1
Acid test ratio
16 1
1
Debt to equity ratio
Times interest earned ratio
limes
References
Worksheet
Difficulty & Hard
Learning Objective 12:03 Use ratios to analyze a company'

67606782_2637269746285733_2819616136851619840_n.jpg

VIRTUAL GAMING SYSTEMS
Income Statement
For the year ended December 31, 2021
Net sales
$3,071,000
Cost of goods sold
1,957,000
Gross profit
1, 114,000
Expenses:
Operating expenses
$865,000
Depreciation expense
30,500
Loss on sale of land
8.700
Interest expense
18,500
Income tax expense
55,000
Total expenses
977,700
Net income
$ 130,300
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2021
2020
Assets
Current assets:
Cash
$193,000
$151,000
Accounts receivable
88,000
67,000
Inventory
112,000
142,000
Prepaid rent
12,700
6,840
Long-term assets
Investment in bonds
112,000
Land
217,000
247,000
Equipment
277,000
217,000
Less Accumulated depreciation
(79,500)
(49,000)
Total assets
$932 200
$781,840
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 73,000
$ 88,000
Interest payable
7,400
3,700
Income tax payable
18,500
14,700
Long-term liabilities
Notes payable
292.000
232,000
Stockholders' equity
Common stock
307 000
307 000
Retained earnings
234 300
136.440
Total liabilities and stockholders' equity
$932 200
$781 840
Required:
Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your final answers to 1 decimal place.)

Top Answer

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IMG-20190805-WA0013.jpg

8 .
Times interest Ecorned ratio =
EBIT
Interest Expense.
EBIT ( Earning Before Interest & Tax. )
EBIT = Net Income + Income tax+ I'nterest Exp.
136300 + 55000+ 18500
= $ 209800
Now Times...

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