d. Calculate the Accounts Receivable Turnover for 2021. e. Calculate the Inventory Turnover for 2021. f. Calculate the Times Interest Earned Ratio for 2021.
d. Calculate the Accounts Receivable Turnover for 2021. e. Calculate the Inventory Turnover for 2021. f. Calculate the Times Interest Earned Ratio for 2021.
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 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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Big Corporation reported the following income statement and balance sheet for the past two years:
Big Corporation | ||||||
Comparative Income Statement | ||||||
For the Years Ended December 31, 2021 and 2020 | ||||||
2021 | 2020 | |||||
Amount | Amount | |||||
Sales | $ 100,600,800 | $ 92,600,500 | ||||
Cost of goods sold | 66,750,500 | 60,750,800 | ||||
Gross profit | 33,850,300 | 31,849,700 | ||||
Selling expenses | 7,150,500 | 6,240,800 | ||||
Administrative expenses | 4,950,800 | 4,590,700 | ||||
Total operating expenses | 12,101,300 | 10,831,500 | ||||
Income from operations | 21,749,000 | 21,018,200 | ||||
Interest Expense | 425,500 | 476,300 | ||||
Other income | 148,400 | 127,200 | ||||
Income before income tax | 21,471,900 | 20,669,100 | ||||
Income tax expense | 8,588,800 | 8,267,700 | ||||
Net income | $ 12,883,100 | $ 12,401,400 | ||||
Big Corporation | ||||||
Comparative Balance Sheet | ||||||
As of December 31, 2021 and 2020 | ||||||
2021 | 2020 | |||||
Cash | $14,799,900 | $6,850,600 | ||||
14,105,300 | 11,335,700 | |||||
Inventories | 5,860,300 | 4,210,100 | ||||
Prepaid Expenses | 1,678,800 | 1,215,800 | ||||
Total current assets | 36,444,300 | 23,612,200 | ||||
Fixed assets, net | 35,600,700 | 32,400,500 | ||||
Total assets | $72,045,000 | $56,012,700 | ||||
Accounts payable | $9,350,800 | $8,430,900 | ||||
Accrued expenses | 3,230,300 | 3,180,500 | ||||
Other current liabilities | 5,875,100 | 6,470,700 | ||||
Total current liabilities | 18,456,200 | 18,082,100 | ||||
Long-term debt | 15,750,600 | 15,900,500 | ||||
Common stock | 5,750,000 | 5,750,000 | ||||
32,088,200 | 16,280,100 | |||||
Total liabilities & equity | $72,045,000 | $56,012,700 | ||||
Common Dividends Paid | 2,250,000 | 2,180,000 |
d. Calculate the Accounts Receivable Turnover for 2021.
e. Calculate the Inventory Turnover for 2021.
f. Calculate the Times Interest Earned Ratio for 2021.
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