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

question 52

Essay

The following information is from Omega Corporation's balance sheets as of December 31,2010 and 2011 and its income statement for 2011:
$\begin{array}{|l|r|r|}\hline&2011&2010\\\hline\text { Assets: }\\\hline\text { Cash } & \$ 18,000 & \$ 22,000 \\\hline \text { Marketable securities } & 25,000 & 0 \\\hline \text { Accounts receivable } & 38,000 & 42,000 \\\hline \text { Inventory } & 61,000 & 52,000 \\\hline \text { Prepaid insurance } & 6,000 & 9,000 \\\hline \text { Long-term investments } & 49,000 & 20,000 \\\hline \text { Plant assets, net } & 218,000 & 225,000 \\\hline \text { Total assets } & \$ 415,000 & \$ 370,000\\\hline\\\hline\text { Net income } & \$ 62,250 \\\hline \text { Sales (all on credit) } & 305,000 \\\hline \text { Cost of goods sold } & 123,000 \\\hline \text { Interest expense } & 15,600 \\\hline \text { Income tax expense } & 27,000\\\hline\end{array}$

From the above information,calculate the following ratios for 2011:
(a)Inventory turnover.
(b)Accounts receivable turnover.
(c)Return on total assets.
(d)Times interest earned.
(e)Total asset turnover.

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Definitions:

Spinal Reflex Arc

A neural pathway that mediates a reflex action involving the spinal cord, consisting of at least one sensory neuron and one motor neuron.

Sensory Neuron

A type of neuron that transmits signals from sensory receptors towards the central nervous system, allowing it to perceive stimuli.

Motor Neuron

A type of neuron responsible for conveying impulses from the brain or spinal cord to muscles or glands, causing them to contract or secrete, respectively.

Sensory Receptor

Specialized cells or nerve endings that respond to changes in the environment by generating electrical signals.