Selected Balances from a Company's Financial Statements Are Shown Below

question 25

Essay

Selected balances from a company's financial statements are shown below.Calculate the following ratios for 2018:
(a)accounts receivable turnover
(b)inventory turnover
(c)days' sales uncollected
(d)days' sales in inventory
(d)profit margin.
(e)return on total assets.
$\begin{array}{|l|r|r|}\hline&\text { Dec. 31, } & \text { Dec. 31, } & \text { For the } \\\hline& \text { E018 } & 2017 & \text { Year 2018 }\\\hline \text { Accounts receivable } & \$ 27,000 & \$ 24,000 \\\hline \text { Merchandise inventory } & 25,000 & 20,000 \\\hline \text { Total assets } & 296,000 & 244,000 \\\hline \text { Accounts payable } & 26,000 & 32,000 \\\hline \text { Salaries pavable } & 3,000 & 4,400 \\\hline \text { Sales (all on credit)}&&&\$312,000\\\hline \text { Cost of goods sold}&&&165,600\\\hline \text { Salaries expense}&&&48,000\\\hline \text { Other expenses}&&&75,000\\\hline \text { Net income}&&&24,000\\\hline\end{array}$

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