Use the Financial Data Shown Below to Calculate the Following

question 127

Essay

Use the financial data shown below to calculate the following ratios for the current year:
(a)Current ratio
(b)Acid-test ratio
(c)Accounts receivable turnover
(d)Days' sales uncollected
(e)Inventory turnover
(f)Days' sales in inventory
$$\begin{array}{l}\text { Income statement data }\\\begin{array} { | l | r | r | } \hline \text { Sales } & \$ 650,000 & \\\hline \text { Cost of goods sold } & 425,000 & \\\hline \text { Income before taxes } & 78,000 & \\\hline \text { Net incorne } & 54,600 & \\\hline & & \\\hline & \text { Ending } &\text { Beginning } \\&\text { Balances }&\text { Balances }\\ \hline \text { Cash } & \$ 19,500 & \$ 15,000 \\\hline \text { Accounts receivable (net) } & 65,000 & 60,000 \\\hline \text { Inventory } & 71,500 & 64,500 \\\hline \text { Plant and equipment (net) } & \underline { 195,000 } & \underline { 183,900 } \\\hline \text { Total assets } & \$ 351,000 & \$ 323,400 \\\hline & & \\\hline \text { Current liabilities } & \$ 62,400 & \$ 52,700 \\\hline \text { Long-term notes payable } & 97,500 & 100,000 \\\hline\end{array}\end{array}$$

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Definitions:

Gag Rule

Any rule that prohibits public discussion of a particular topic, famously applied in the U.S. Congress to prevent debate on anti-slavery petitions from 1836 to 1844.

Antislavery Petitions

Antislavery petitions were formal requests submitted to legislative bodies, especially during the 18th and 19th centuries, calling for the abolition of slavery and the slave trade.

Seneca Falls Convention

A landmark meeting held in 1848 in Seneca Falls, New York, regarded as the first women's rights convention, instrumental in initiating the women's suffrage movement in the United States.

Abolitionists' Concept

The ideology held by those who advocated for the immediate emancipation of slaves and the end of racial discrimination and segregation.