Question

Rachel Company Balance Sheet and selected Income Statement data $300,000 2,215,000 1,837,500 24,000 $3,286,500 2,700,000 1,087,500 $1,612,500 $4.899,000 Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity Total liabilities and owner's equity Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income Common stock dividends Change in retained earnings $240,000 825,000 42.500 $1,107,000 975,000 2.817,000 $4,899.000 S6,375,000 4,312,500 1,387,500 135,000 127.000 S412.500 225.000 $187.500 $97,500 $90,000 6 (Ctrl) - to search RI

calculate
current ratio, average collection period, debt ratio, net profit margin and inventory turnover ratio.

Answer 1

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C w ENG 05:07 30-05-2020 27 X AQ162 fx AQ AR AS AT AU AV AW AX AY AZ В. 140 1 current ratio = current assets/current liabilities current ratio = 3286500/1107000 = 2.97 141 142 143 144 145 2 average collection period average collection period = 365 days x accounts receivable/sales 365 x 2215000/6375000 = 126.82 146 3 debt ratio = debt ratio = total debt/total assets (1107000 + 975000)/4899000 = 42.50% 147 148 149 150 151 152 4 net profit margin net profit margin net income/sales 187500/6375000 = 153 = 2.94% 154 5 inventory turnover ratio = inventory turnover ratio = COGS/inventory 4312500/1837500 = 2.35 155 156 157 158 159 160 161 162 163 cycle MCE ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET dupont DIFF ANALYSIS overhead