Wings Corporation has issued common stock only. The company : 1312014
Wings Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below was taken from the company's financial statements.
Beginning inventory$ 482,000
Average accounts receivable800,000
Average common stockholders' equity3,500,000
Sales (all on credit)6,000,000
Compute the following:
(a)Receivables turnover and the average collection period.
(b)Inventory turnover and the days in inventory.
(c)Return on common stockholders' equity.
Booker Corporation had the following comparative current assets and current liabilities:
Dec. 31, 2013Dec. 31, 2012
Cash$ 60,000$ 30,000
Prepaid expenses 35,000 20,000
Total current assets$300,000$245,000
Income tax payable 20,000 15,000
Total current liabilities$200,000$155,000
During 2013, credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Compute the following liquidity measures for 2013: