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:

Ultrasound

A diagnostic imaging technique that uses high-frequency sound waves to create images of structures within the body.

Intracranial Structures

Structures located within the cranium, including the brain, blood vessels, cranial nerves, and cerebrospinal fluid.

Barium Enema

A diagnostic test in which a liquid containing barium is inserted into the rectum to enhance the imaging of the colon on an X-ray.

Anteroposterior

An anatomical term referring to the direction from the front (anterior) to the back (posterior) of the body.