Homework Help is Here – Start Your Trial Now!
Business
Accounting
The comparative statements of Dubai Company are presented below.   All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020. Required: Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) C

The comparative statements of Dubai Company are presented below.   All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020. Required: Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) C

Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
See similar textbooks
icon
Related questions
Question

The comparative statements of Dubai Company are presented below.

 

All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020.

Required:

Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.)

  1. Current.
  2. Acid-test.
  3. Accounts receivable turnover.
  4. Inventory turnover.
Dubai Company Income Statement For the Year Ended December 31 2021 $1,828,500 1,010,500 818,000 516,000 302,000 2020 S1,750,500 996,000 754,500 479,000 275,500 Net sales Cost of goods sold Gross profit Selling and administrative expense Income from operations Other expenses and losses Interest expense 17,000 285,000 75,000 $ 210,000 14,000 261,500 Income before income taxes Income tax expense Net income 77,000 $ 184,500 Dubai Company Balance Sheets December 31 Assets Current assets Cash 2021 2020 $ 60,100 $ 64,200 50,000 102,800 115,500 332,500 520,300 $852,800 Short-term investments 64,000 122,800 118.000 364,900 605.300 $970,200 Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Liabilities and Stockholders’ Equity Current liabilities Accounts payable Income taxes payable $160,000 43,500 203,500 $145,400 42,000 187,400 Total current liabilities
Transcribed Image Text:Dubai Company Income Statement For the Year Ended December 31 2021 $1,828,500 1,010,500 818,000 516,000 302,000 2020 S1,750,500 996,000 754,500 479,000 275,500 Net sales Cost of goods sold Gross profit Selling and administrative expense Income from operations Other expenses and losses Interest expense 17,000 285,000 75,000 $ 210,000 14,000 261,500 Income before income taxes Income tax expense Net income 77,000 $ 184,500 Dubai Company Balance Sheets December 31 Assets Current assets Cash 2021 2020 $ 60,100 $ 64,200 50,000 102,800 115,500 332,500 520,300 $852,800 Short-term investments 64,000 122,800 118.000 364,900 605.300 $970,200 Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Liabilities and Stockholders’ Equity Current liabilities Accounts payable Income taxes payable $160,000 43,500 203,500 $145,400 42,000 187,400 Total current liabilities
Bonds payable Total liabilities 210,000 413,500 200,000 387,400 Stockholders' equity Common stock (S5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders’ equity 280,000 276,700 556,700 465,400 $970,200 S852,800 300,000 165,400
Transcribed Image Text:Bonds payable Total liabilities 210,000 413,500 200,000 387,400 Stockholders' equity Common stock (S5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders’ equity 280,000 276,700 556,700 465,400 $970,200 S852,800 300,000 165,400
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS