Cullumber Company has these comparative balance sheet data: CULLUMBER COMPANY Balance Sheets December 31 2020 2019 Cash $ 16,350 $ 32,700 Accounts receivable (net) 76,300 65,400 Inventory 65,400 54,500 Plant assets (net) 218,000 196,200 $376,050 $348,800 Accounts payable $ 54,500 $ 65,400 Mortgage payable (15%) 109,000 109,000 Common stock, $10 par 152,600 130,800 Retained earnings 59,950 43,600 $376,050 $348,800 Additional information for 2020: 1. Net income was $34,000. 2. Sales on account were $383,300. Sales returns and allowances amounted to $26,600. 3. Cost of goods sold was $200,600. 4. Net cash provided by operating activities was $59,000. 5. Capital expenditures were $26,400, and cash dividends were $16,500. Compute the following ratios at December 31, 2020. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.) (a) Current ratio. :1 (b) Accounts receivable turnover. times (c) Average collection period. days
Cullumber Company has these comparative balance sheet data: CULLUMBER COMPANY Balance Sheets December 31 2020 2019 Cash $ 16,350 $ 32,700 Accounts receivable (net) 76,300 65,400 Inventory 65,400 54,500 Plant assets (net) 218,000 196,200 $376,050 $348,800 Accounts payable $ 54,500 $ 65,400 Mortgage payable (15%) 109,000 109,000 Common stock, $10 par 152,600 130,800 Retained earnings 59,950 43,600 $376,050 $348,800 Additional information for 2020: 1. Net income was $34,000. 2. Sales on account were $383,300. Sales returns and allowances amounted to $26,600. 3. Cost of goods sold was $200,600. 4. Net cash provided by operating activities was $59,000. 5. Capital expenditures were $26,400, and cash dividends were $16,500. Compute the following ratios at December 31, 2020. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.) (a) Current ratio. :1 (b) Accounts receivable turnover. times (c) Average collection period. days
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 16E
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Cullumber Company has these comparative balance sheet data:
CULLUMBER COMPANY
Balance Sheets December 31 |
||||
2020
|
2019
|
|||
Cash |
$ 16,350
|
$ 32,700
|
||
76,300
|
65,400
|
|||
Inventory |
65,400
|
54,500
|
||
Plant assets (net) |
218,000
|
196,200
|
||
$376,050
|
$348,800
|
|||
Accounts payable |
$ 54,500
|
$ 65,400
|
||
Mortgage payable (15%) |
109,000
|
109,000
|
||
Common stock, $10 par |
152,600
|
130,800
|
||
59,950
|
43,600
|
|||
$376,050
|
$348,800
|
Additional information for 2020:
1. | Net income was $34,000. | |
2. | Sales on account were $383,300. Sales returns and allowances amounted to $26,600. | |
3. | Cost of goods sold was $200,600. | |
4. | Net cash provided by operating activities was $59,000. | |
5. | Capital expenditures were $26,400, and cash dividends were $16,500. |
Compute the following ratios at December 31, 2020. (Round
(a) | Current ratio. |
|
:1 | ||
(b) | Accounts receivable turnover. |
|
times | ||
(c) | Average collection period. |
|
days | ||
(d) | Inventory turnover. |
|
times | ||
(e) | Days in inventory. |
|
days | ||
(f) |
$
|
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