Selected information from the 2020 and 2021 financial statements of Super Ratio Corporation is presented...

90.2K

Verified Solution

Question

Accounting

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.

  1. Current ratio
  2. Accounts receivable turnover
  3. Inventory turnover
  4. Asset turnover
  5. Times interest earned

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students