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Sheridan Company has these comparative balance sheet data: Additional information for 2025 : ...

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Accounting

Sheridan Company has these comparative balance sheet data: Additional information for 2025 :
Net income was $24,500.
Sales on account were $370,000. Sales returns and allowances amounted to $26,000.
Cost of goods sold was $204,000.
Net cash provided by operating activities was $49,000.
Capital expenditures were $20,000, and cash dividends paid were $11,000.
The bonds payable are due in 2038.
Compute the following ratios at December 31,2025.(Round current ratio and inventory turnover to 2 decimal places, e.g.1.83 and all other
answers to 1 decimal place, e.g.1.8. Use 365 days for calculation.)
a. Current ratio
b. Accounts receivable turnover
times
c. Average collection period
days
d. Inventory turnover
times Compute the following ratios at December 31,2025.(Round current ratio and inventory turnover to 2 decimal places, e.g.1.83 and all other
answers to 1 decimal place, e.g.1.8. Use 365 days for calculation.)
a. Current ratio
b. Accounts receivable turnover
:1
c. Average collection period
times
d. Inventory turnover
days
e. Days in inventory
days
f. Free cash flow
image

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