The Financial Information Below Presents Selected Information from the Financial

question 157

Essay

The financial information below presents selected information from the financial statements of Pelican Company.Sales revenue during the current year was $13,700,300 and cost of goods sold was $8,905,195.All of Pelican's sales are made on account and are due within 30 days.
$\begin{array} { l r r } & \text { Prior Year } & \text { Current Year } \\\cline { 2 - 4 } \text { Cash and cash equivalents } & \$ 552,330 & \$ 599,780 \\\text { Accounts receivable } & 4,550,000 & 3,800,000 \\\text { Inventory } & 920,360 & 1,223,440 \\\text { Total current assets } & 8,700,030 & 8,480,100 \\\text { Total assets } & 11,100,020 & 10,980,000 \\\text { Total current liabilitics } & 7,200,300 & 7,476,000 \\\text { Total liabilities } & 8,449,900 & 8,240,700\end{array}$
Required:
Part a.Current ratios as of the end of the current and prior year.
Part b.Calculate the receivables turnover ratio for the current year.
Part c.Calculate the days to collect for the current year.
Part d.Calculate the inventory turnover ratio for the current year.
Part d.Calculate the days to sell for the current year.
Part e.Evaluate the company's liquidity position at the end of the current year.Cite any additional information not given in the problem that would be helpful in evaluating the company's liquidity.
Round all ratios to two decimal places.

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Definitions:

Workers Per Beneficiary

The ratio of active employees contributing to a system (like Social Security) to the number of recipients receiving benefits.

Privately Held Federal Debt

Debt owed by the federal government that is not owned by governmental entities but by private investors, firms, individuals, and foreign governments.

Benefit Payments

Money paid to individuals by the government or insurance schemes, as in the case of unemployment benefits, social security, or disability payments.

Social Security Surplus

Occurs when the income from Social Security contributions exceeds the payouts to beneficiaries.