The condensed financial statements of Evoc Company for the years 2019 and 2020 are presented as follows. Evoc Company Statements of Financial Position December 31 2020 2019 Intangibles and other assets € 530 € 510 Property, plant, and equipment 420 380 Investments 10 10 Current assets Prepaid expenses €120 €160 Inventory 430 390 Accounts receivable (net) 470 433 Cash and cash equivalents 330 1,350 360 1,343 Total assets €2,310 €2,243 Equity €1,020 €1,040 Non‐current liabilities 390 393 Current liabilities 900 810 Total equity and liabilities €2,310 €2,243 Evoc Company Income Statements For the Years Ended December 31 2020 2019 Sales revenue €4,000 €3,600 Costs and expenses Cost of goods sold 984 895 Selling and administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,394 3,245 Income before income taxes 606 355 Income tax expense 242 142 Net income € 364 € 213 Compute the following ratios for 2020 and 2019: a. Current ratio b. Inventory turnover (Inventory on 12/31/18 was €326)
The condensed financial statements of Evoc Company for the years 2019 and 2020 are presented as follows. Evoc Company Statements of Financial Position December 31 2020 2019 Intangibles and other assets € 530 € 510 Property, plant, and equipment 420 380 Investments 10 10 Current assets Prepaid expenses €120 €160 Inventory 430 390 Accounts receivable (net) 470 433 Cash and cash equivalents 330 1,350 360 1,343 Total assets €2,310 €2,243 Equity €1,020 €1,040 Non‐current liabilities 390 393 Current liabilities 900 810 Total equity and liabilities €2,310 €2,243 Evoc Company Income Statements For the Years Ended December 31 2020 2019 Sales revenue €4,000 €3,600 Costs and expenses Cost of goods sold 984 895 Selling and administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,394 3,245 Income before income taxes 606 355 Income tax expense 242 142 Net income € 364 € 213 Compute the following ratios for 2020 and 2019: a. Current ratio b. Inventory turnover (Inventory on 12/31/18 was €326)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.3C
Related questions
Question
The condensed financial statements of Evoc Company for the years 2019 and 2020 are presented as follows.
Evoc Company December 31 |
||||
2020 |
2019 | |||
Intangibles and other assets | € 530 | € 510 | ||
Property, plant, and equipment | 420 | 380 | ||
Investments | 10 | 10 | ||
Current assets | ||||
Prepaid expenses | €120 | €160 | ||
Inventory | 430 | 390 | ||
|
470 | 433 | ||
Cash and cash equivalents | 330 | 1,350 | 360 | 1,343 |
Total assets | €2,310 | €2,243 | ||
Equity | €1,020 | €1,040 | ||
Non‐current liabilities | 390 | 393 | ||
Current liabilities | 900 | 810 | ||
Total equity and liabilities | €2,310 | €2,243 |
Evoc Company Income Statements For the Years Ended December 31 |
||
2020 | 2019 | |
Sales revenue | €4,000 | €3,600 |
Costs and expenses | ||
Cost of goods sold | 984 | 895 |
Selling and administrative expenses | 2,400 | 2,330 |
Interest expense | 10 | 20 |
Total costs and expenses | 3,394 | 3,245 |
Income before income taxes | 606 | 355 |
Income tax expense | 242 | 142 |
Net income | € 364 | € 213 |
Compute the following ratios for 2020 and 2019:
a.
b. Inventory turnover (Inventory on 12/31/18 was €326)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
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.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning