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Solve from the following facts. (Round your answers to the nearest hundredth.)                   Current assets $ 14,000   Net sales $ 40,000     Accounts receivable $ 5,000   Total assets $ 38,000     Current liabilities $ 20,000   Net income $ 10,100     Inventory $ 4,000             a. Calculate  Current ratio. b. Calculate Acid test. c. Calculate Average day’s collection. d. Calculate Asset turnover. e. Calculate Profit margin on sales.

Solve from the following facts. (Round your answers to the nearest hundredth.)                   Current assets $ 14,000   Net sales $ 40,000     Accounts receivable $ 5,000   Total assets $ 38,000     Current liabilities $ 20,000   Net income $ 10,100     Inventory $ 4,000             a. Calculate  Current ratio. b. Calculate Acid test. c. Calculate Average day’s collection. d. Calculate Asset turnover. e. Calculate Profit margin on sales.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...
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Solve from the following facts. (Round your answers to the nearest hundredth.)

 

             
  Current assets $ 14,000   Net sales $ 40,000  
  Accounts receivable $ 5,000   Total assets $ 38,000  
  Current liabilities $ 20,000   Net income $ 10,100  
  Inventory $ 4,000          
 

a. Calculate  Current ratio.

b. Calculate Acid test.

c. Calculate Average day’s collection.

d. Calculate Asset turnover.

e. Calculate Profit margin on sales.

 

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