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

question 127

Essay

Selected balances from a company's financial statements are shown below:
$\begin{array}{|l|r|r|r|}\hline&\text { Dec. 31, } &\text { Dec. 31, }& \text { For the }\\&2010&2011&\text { Year 2011 }\\\hline \text { Merchandise inventory } & \$ 15,000 & \$ 20,000 \\\hline \text { Accounts payable } & 32,000 & 26,000 \\\hline \text { Salaries payable } & 4,400 & 3,000 \\\hline \text { Accounts receivable } & 24,000 & 21,000 \\\hline \text { Total assets } & 234,000 & 286,000 \\\hline \text { Sales (all on credit) } & & & \$ 312,000 \\\hline \text { Cost of goods sold } & & & 165,600 \\\hline \text { Salaries expense } & & & 48,000 \\\hline \text { Other expenses } & & & 75,000 \\\hline \text { Net income } & & & 24,000\\\hline\end{array}$

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

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Definitions:

Rice Plantations

Large agricultural estates specifically designed for the cultivation of rice, historically significant in the American South where they were worked by enslaved African Americans.

South Carolina

A state located in the southeastern region of the United States, known for its historical significance in the American Civil War and as the site of the first battles.

Black Majority

A demographic situation where the majority of a population or community consists of Black or African American individuals.

Slavery Decreasing

A historical period or process where the institution of slavery is in decline, often leading to its eventual abolition.