Armada Company Has These Comparative Balance Sheet Data: Additional

question 173

Essay

Armada Company has these comparative balance sheet data: Additional information for 2017:
1. Net income was $25,000.
2. Sales on account were $450,000. Sales returns and allowances amounted to $25,000.
3. Cost of goods sold was $275,000.
4. Net cash provided by operating activities was $49,000.
5. Capital expenditures were $23,000, and cash dividends were $18,000.
Instructions
Compute the following ratios at December 31, 2017.
(a) Current. (e) Days in inventory
(b) Accounts receivable turnover. (f) Free cash flow.
(c) Average collection period.
(d) Inventory turnover.

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Definitions:

Estate Planning Services

Professional services aimed at assisting individuals in managing the distribution of their assets and wealth after their death.

Two-part Tariff

A pricing strategy where the price of a product or service is composed of two parts: a fixed fee plus a variable charge based on usage or consumption.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Reservation Prices

The maximum price a consumer is willing to pay for a good or service, beyond which they will not purchase it.