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

question 149

Essay

Selected balances from a company's financial statements are shown below:
$\begin{array}{|l|r|r|r|}\hline&\text { Dec. 31, } & \text { Dec. 31, } & \text { For the } \\&2013 & 2014 & \text { Year 2014 } \\\hline \text { Merchandise inventory } & \$ 15,000 & \$ 20,000 \\\hline \text { Accounts payable } & 32,000 & 26,000 \\\hline \text { Salaries payable } & 4,400 & 3,000 \\\hline \text { Accounts receivable } & 24,000 & 21,000 \\\hline \text { Total assets } & 234,000 & 286,000 \\\hline \text { Sales (all on credit) } & & & \$ 312,000 \\\hline \text { Cost of goods sold } & & & 165,600 \\\hline \text { Salaries expense } & & & 48,000 \\\hline \text { Other expenses } & & & 75,000 \\\hline \text { Net income } & & & 24,000\\\hline\end{array}$

Use the information above to calculate the following current year ratios:
(a)2014 inventory turnover.
(b)Days' sales uncollected at Dec.31,2014.
(c)2014 profit margin.
(d)2011 return on total assets.

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Definitions:

Inductive

A reasoning method that makes broad generalizations from specific observations.

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