90.2K
Verified Solution
Link Copied!
Selected information from the 2020 and 2021 financial statements of Super Ratio Corporation is presented below:
As of December 31
| 2021 | 2020 |
Cash | $21,000 | $35,000 |
Marketable securities (current) | 27,000 | 22,000 |
Accounts receivable (net) | 60,000 | 98,000 |
Inventory | 105,000 | 142,000 |
Prepaid expenses | 5,000 | 3,000 |
Land and building (net) | 247,000 | 315,000 |
Accounts payable | 57,000 | 75,000 |
Accrued expenses | 10,000 | 14,000 |
Notes payable (short-term) | 8,000 | 4,000 |
Bonds payable (due in three years) | 52,000 66,000 As of December 31 2021 2020 |
Cash sales | $750,000 | $675,000 |
Credit sales (percent of cash sales) | 82% | 85% |
Cost of goods sold (percent of total sales) | 60% | 58% |
Net income | $30,000 | $38,000 |
Interest expense | 6,000 | 9,000 |
Income tax expense | 6,000 | 7,000 |
Compute the following ratios for Super Ratio Corporation as of December 31, 2021. Round your answers to two decimal places.
- Current ratio
- Accounts receivable turnover
- Inventory turnover
- Asset turnover
- Times interest earned
Answer & Explanation
Solved by verified expert