Question

In: Accounting

Following is an extract of information from the books of Express Photos: 2016 2015 Net Sales...

Following is an extract of information from the books of Express Photos:

2016 2015
Net Sales 166,500
Net Credit Sales 150,500
Inventory 13,000 15,000
Total Assets 98,000
Current Liabilites 48,000
COGS 86,000
Gross Profit 80,500
Current Assets 77,000
Net Profit 55,000
Total Liabilities 56,000
Accounts Receivable 25,000 18,000
Non leap year

Calculate the following ratios:

Format as noted.

Current Ratio (to 1 decimal place) Answer
Debt Ratio (as a percentage to 1 decimal place - no "%") Answer
Days Sales in Receivables (rounded to nearest whole number) Answer
Inventory Turnover (rounded to nearest whole number) Answer
Rate if Return on Net Sales (as a percentage to 1 decimal place - no "%") Answer

Select the ratio that would generally be considered better for each of the following:

Current Ratio   Answer 1.5 or 1.4

Debt Ratio   Answer 60%    or 65%

Inventory Turnover Answer 5    or 4

Gross Profit Answer 65%    or 35%

Accounts Receivable Turnover Answer 10    or 20

Solutions

Expert Solution

Here, in the given problem we are required to calculate various ratios. Following is the attached file:-


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