Given the Following Information from the Current Financial Statements of Arbonne

question 189

Essay

Given the following information from the current financial statements of Arbonne Corp,calculate the ratios listed below the financial statements. (A)Current ratio.
(B)Accounts receivable turnover.
Assume the beginning of year accounts receivable balance was $59,500.
(C)Days' sales uncollected.
(D)Merchandise turnover.
Assume the beginning of year merchandise inventory was $50,200.
(E)Times interest earned.
(F)Return on common shareholders' equity.
Assume the beginning of year common shares balance was $180,000 and retained earnings was $128,000.
(G)Earnings per share (assume Arbonne Corp's average common shares outstanding is 50,000).
(H)Price-earnings ratio.
Assume the company's shares are selling for $26 per share.

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Definitions:

Transportation Cost

Expenses related to the movement of goods or materials from one location to another, including shipping, freight, and logistics costs.

Vidalia Onions

A variety of sweet onion grown exclusively in a specific region of Georgia, known for its mild flavor.

Safety Inventory

Additional stock that is kept to prevent stockouts and ensure smooth production or sales processes in the face of demand variability.

Holding Cost

The expense associated with storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.