Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 2019 Cash $ 16,000 $ 30,000 Accounts receivable (net) 70,000 59,000 Inventory 59,000 49,000 Plant assets (net) 200,000 179,000 $345,000 $317,000 Accounts payable $50,000 $59,000 Mortgage payable (15%) 106,500 106,500 Common stock, $10 par 142,000 125,000 Retained earnings 46,500 26,500 $345,000 $317,000 Additional information for 2020: 1. Net income was $25,600. 2. Sales on account were $406,800. Sales returns and allowances amounted to $19,800. 3. Cost of goods sold was $199,800. 4. Net cash provided by operating activities was $45,700. 5. Capital expenditures were $23,600, and cash dividends were $10,200. Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.) (a) Current ratio enter the Current ratio rounded to 2 decimal places :1 (b) Accounts receivable turnover enter the Accounts receivable turnover rounded to 1 decimal place times (c) Average collection period enter the Average collection period rounded to 1 decimal place days (d) Inventory turnover enter the Inventory turnover rounded to 1 decimal place times (e) Days in inventory enter the Days in inventory rounded to 1 decimal place days (f) Free cash flow $enter a dollar amount

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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Lendell Company has these comparative balance sheet data:

Lendell Company Balance Sheets December 31
	2020	2019
Cash	$ 16,000		$ 30,000
Accounts receivable (net)	70,000		59,000
Inventory	59,000		49,000
Plant assets (net)	200,000		179,000
	$345,000		$317,000
Accounts payable	$50,000		$59,000
Mortgage payable (15%)	106,500		106,500
Common stock, $10 par	142,000		125,000
Retained earnings	46,500		26,500
	$345,000		$317,000

Additional information for 2020:

1.		Net income was $25,600.
2.		Sales on account were $406,800. Sales returns and allowances amounted to $19,800.
3.		Cost of goods sold was $199,800.
4.		Net cash provided by operating activities was $45,700.
5.		Capital expenditures were $23,600, and cash dividends were $10,200.

Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.)

(a)	Current ratio	enter the Current ratio rounded to 2 decimal places	:1
(b)	Accounts receivable turnover	enter the Accounts receivable turnover rounded to 1 decimal place	times
(c)	Average collection period	enter the Average collection period rounded to 1 decimal place	days
(d)	Inventory turnover	enter the Inventory turnover rounded to 1 decimal place	times
(e)	Days in inventory	enter the Days in inventory rounded to 1 decimal place	days
(f)	Free cash flow	$enter a dollar amount

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