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Ex. 200 Wings Corporation has issued common stock only. The company

Question : Ex. 200 Wings Corporation has issued common stock only. The company : 1312014

 
Ex. 200

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

Purchases4,836,000

Ending inventory?

Average accounts receivable800,000

Average common stockholders' equity3,500,000

Sales (all on credit)6,000,000

Net income420,000

 

Instructions

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.

 

Ex. 201

Booker Corporation had the following comparative current assets and current liabilities:

Dec. 31, 2013Dec. 31, 2012

Current assets

Cash$  60,000$  30,000

Short-term investments40,00010,000

Accounts receivable55,00095,000

Inventory110,00090,000

Prepaid expenses    35,000    20,000

Total current assets$300,000$245,000

Current liabilities

Accounts payable$140,000$110,000

Salaries payable40,00030,000

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.

Ex. 201(Cont.)

Instructions

Compute the following liquidity measures for 2013:

1.Current ratio.

2.Working capital.

3.Acid-test ratio.

4.Receivables turnover.

5.Inventory turnover.

 

 

 

Solution
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Economics 1 Year Ago 15 Views
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