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