The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.

Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.

FINANCIAL RATIOS Based on the financial statements, shown on pages 603604, for McDonald Carpeting Co. (income statement, statement of owners equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was 6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory

BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x Days sales outstanding: 36 days Inventory turnover ratio: 7x Fixed assets turnover: 2.5x Current ratio: 1.5x Gross profit margin on sales: (Sales- Cost of goods sold)/Sales = 20% Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash Accounts receivable. Inventories Fixed assets Total assets Sales $300,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold 45,000 90,000

Simon Company’s year-end balance sheets follow.  At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets                       Cash   $ 30,328     $ 35,451   $ 36,196   Accounts receivable, net     89,000       62,300     51,200   Merchandise inventory     113,500       83,500     56,000   Prepaid expenses     9,767       9,306     4,022   Plant assets, net     266,348       248,187     214,582   Total assets   $ 508,943     $ 438,744   $ 362,000   Liabilities and Equity                       Accounts payable   $ 127,994     $ 74,889   $ 48,262   Long-term notes payable secured bymortgages on plant assets     96,638       101,920     80,802   Common stock, $10 par value     162,500       162,500     162,500   Retained earnings     121,811       99,435     70,436   Total liabilities and equity   $ 508,943     $ 438,744   $ 362,000      The company’s income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:  For…

Simon Company’s year-end balance sheets follow.  At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets                       Cash   $ 30,328     $ 35,451   $ 36,196   Accounts receivable, net     89,000       62,300     51,200   Merchandise inventory     113,500       83,500     56,000   Prepaid expenses     9,767       9,306     4,022   Plant assets, net     266,348       248,187     214,582   Total assets   $ 508,943     $ 438,744   $ 362,000   Liabilities and Equity                       Accounts payable   $ 127,994     $ 74,889   $ 48,262   Long-term notes payable secured bymortgages on plant assets     96,638       101,920     80,802   Common stock, $10 par value     162,500       162,500     162,500   Retained earnings     121,811       99,435     70,436   Total liabilities and equity   $ 508,943     $ 438,744   $ 362,000      The company’s income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:  For…

Problem 1 Gemini Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P50,000 of uncollectible accounts. Further analysis showed that merchandise purchased amounted to P9,000,000 and ending merchandise inventory was P1,500,000. Goods were sold at 40% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P6,000,000. 1. What is the amount of cost of goods sold? 2. What is the amount of sales on account? 3. What is the net realizable value of accounts receivable at year-end?_

Consider the following financial statement information for the Newk Corporation: Item Beginning Ending Inventory S 12,435 $ 15,615 Accounts receivable 6,120 6,287 Accounts payable 7,930 9,140 Credit sales $ 143,187 Cost of goods sold 79,218 Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Operating cycle 80.87selected answer correct Cash cycle days. 40.64selected answer incorrect days

Simon Company's year-end balance sheets follow.  At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets                     Cash   $ 33,325   $ 40,941   $ 41,409   Accounts receivable, net     95,601     68,169     55,770   Merchandise inventory     123,917     93,757     59,995   Prepaid expenses     11,170     10,643     4,555   Plant assets, net     312,345     283,350     260,771   Total assets   $ 576,358   $ 496,860   $ 422,500   Liabilities and Equity                     Accounts payable   $ 143,513   $ 82,290   $ 55,212   Long-term notes payable secured bymortgages on plant assets     111,606     111,992     92,439   Common stock, $10 par value     163,500     163,500     163,500   Retained earnings     157,739     139,078     111,349   Total liabilities and equity   $ 576,358   $ 496,860   $ 422,500      1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1…