The Following Information Is from Omega Corporation's Balance Sheets as of December

question 5

Essay

The following information is from Omega Corporation's balance sheets as of December 31,2013 and 2014 and its income statement for 2014:
$\begin{array}{|l|r|r|}\hline&2014&2013\\\hline \text { Cash } & \$ 18,000 & \$ 22,000 \\\hline \text { Marketable securities } & 25,000 & 0 \\\hline \text { Accounts receivable } & 38,000 & 42,000 \\\hline \text { Inventory } & 61,000 & 52,000 \\\hline \text { Prepaid insurance } & 6,000 & 9,000 \\\hline \text { Long-term investments } & 49,000 & 20,000 \\\hline \text { Plant assets, net } & \underline{218,000} & 225,000 \\\hline \text { Total assets } & \$ 415,000 & \$ 370,000 \\\hline\\\hline \text { Net income } & \$ 62,250 \\\hline \text { Sales (all on credit) } & 305,000 \\\hline \text { Cost of goods sold } & 123,000 \\\hline \text { Interest expense } & 15,600 \\\hline \text { Income tax expense } & 27,000\\\hline \end{array}$

From the above information,calculate the following ratios for 2014:
(a)Inventory turnover.
(b)Accounts receivable turnover.
(c)Return on total assets.
(d)Times interest earned.
(e)Total asset turnover.

Recognize how donated goods and capital assets should be accounted for in financial statements.

Understand how endowment contributions and their investment income are presented and used within financial statements.

Recognize the financial reporting requirements and options available to Canadian private not-for-profit organizations.

Apply accounting principles to real-life scenarios involving not-for-profit financial transactions and reporting.

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Definitions:

Adult Change

Refers to the psychological, emotional, and physical changes that occur in adults due to aging, life experiences, or personal development.

Periods Of Human Development

Distinct phases in the life span of a human, characterized by specific physical, psychological, and cognitive changes.

Cognitive Event

An occurrence or moment that involves mental processes such as perception, memory, judgment, and reasoning, influencing how we understand and interact with the world.

Psychosocial

Pertaining to the interrelation of social factors and individual thoughts and behaviors.