Given the Following Financial Data for Cliniva Corp,calculate the Ratios

question 133

Essay

Given the following financial data for Cliniva Corp,calculate the ratios listed below the data.
Cliniva Corp.
Partial Income statement
Far the year ended December 31, 2021
$\begin{array}{|l|r|}\hline \text { Sales (all on credit) } & \$ 650,000 \\\hline \text { Cost of goods sold } & 225,400 \\\hline \text { Income before taxes } & \$ 424,600 \\\hline \text { Income tax expense } & 186,000 \\\hline \text { Profit } & \$ 238,600\\\hline \end{array}$ Cliniva Corp.
Comparative Balance Sheet
December 31,
$\begin{array}{|l|r|r|}\hline & \mathbf{2 0 2 1} & \mathbf{2 0 2 0} \\\hline \text { Cash } & \$ 14,600 & \$ 18,000 \\\hline \text { Accounts Receivable (net) } & 56,000 & 58,000 \\\hline \text { Merchandise inventory } & 22,800 & 21,400 \\\hline \text { Property, plant and equipment (net) } & 185,000&145,000 \\\hline \text { Total Assets } & \$ 278,400&\$242,400 \\\hline \text { Current liabilities } & \$ 83,000 \\\hline \text { Long-term notes payable } & 89,000 \\\hline\end{array}$ (A)Current ratio.(B)Acid-test ratio.(C)Days' sales uncollected.(D)Merchandise turnover.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, preparing the books for the next period.

Long-term Note Payable

A liability in the form of a written promise to pay a specified sum of money, with a maturity of more than one year from the date of issuing.

Accrual Accounting

An accounting method where transactions are recorded when they are earned or incurred, rather than when cash is exchanged, providing a more accurate financial picture.

Adjusting Process

The adjusting process in accounting involves making entries at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.