Armada Company Has These Comparative Balance Sheet Data Additional Information for 2014:
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question 268

Essay

Armada Company has these comparative balance sheet data: $\begin{array}{c}\text { ARMADA COMPANY}\\\text { Balance Sheets }\\\text { December 31 .}\\\begin{array}{lrr}&\underline{2014}&\underline{2013}\\\text { Cash } & \$ 40,000 & \$ 30,000 \\\text { Accounts receivable (net) } & 65,000 & 60,000 \\\text { nnventories } & 60,000 & 50,000 \\\text { Plant assets (net) } & \underline{185,000} &\underline{180,000} \\&\underline{\$ 350,000}&\underline{\$ 320,000}\\ \text { Accounts payable } & \underline{\$ 50,000} & \$ 60,000 \\\text { Mortgage payable (15\%, due in 15 years) } & 100,000 & 100,000 \\\text { Common stock, } \$ 10 \text { par } & 140,000 & 120,000 \\\text { Retained earnings } & \underline{60,000 }&\underline{40,000} \\&\underline{\$350,000}&\underline{\$320,000}\end{array}\end{array}$ Additional information for 2014:
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, 2014.
(a) Current. (e) Days in inventory
(b) Accounts receivable turnover. (f) Cash debt coverage.
(c) Average collection period. (g) Current cash debt coverage.
(d) Inventory turnover. (h) Free cash flow.

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Definitions:

Presumed Consent

A policy where individuals are assumed to have agreed to organ donation upon their death unless they have explicitly opted out.

Organ Shortage

The critical lack of available organs compared to the number of patients in need of organ transplants, posing a significant challenge to healthcare systems worldwide.

Annas

Refers possibly to George Annas, an American bioethicist known for his work on human rights in healthcare.

Immediate Need

A situation or condition requiring urgent attention and prompt action to prevent or address potential harm or to fulfill a critical requirement.