Question

Problem 14-5A Condensed statement of financial position and income statement data for Speedway Corporation follow: 2016 $17,900 48,100 63,700 129,700 SPEEDWAY CORPORATION Statement of Financial Position December 31 2018 2017 Assets Current assets Cash $25,200 $20,100 Accounts receivable (net) 55,300 45,300 Inventory 100,000 85,100 Total current assets 180,500 150,500 Long-term investments 57,500 69,700 Property, plant, and equipment (net) 498,900 371,800 Total assets $736,900 $592,000 Liabilities and Shareholders' Equity Liabilities Current liabilities $85,700 $79,600 Non-current liabilities 155,700 85,400 Total liabilities 241,400 165,000 Shareholders' equity Common shares 329,700 302,700 Retained earnings 165,800 124,300 Total shareholders' equity 495,500 427,000 Total liabilities and shareholders' equity $736,900 $592,000 256,000 $431,600 $30,100 19,900 50,000 299,100 82,500 381,600 $431,600 SPEEDWAY CORPORATION Income Statement Year Ended December 31 2018 Sales $747,100 Less: Sales returns and allowances 40,400 Net sales 706,700 Cost of goods sold 448,700 Gross profit 258,000 Operating expenses 150,000 Income from operations 108,000 2017 $509,900 49,900 460,000 300,800 159,200 83,400 75,800

Answer 1

1) Current Ratio:	2018	2017
Total Current Assets (a)	$180,500	$150,500
Total Current Liabilities (b)	$85,700	$79,600
Current Ratio (a / b)	2.11	1.89
2) Receivable turnover:	2018	2017
Net Sales (a)	$706,700	$460,000
Average accounts receivable ($55,300 + $45,300/2); ($45,300 + $48,100/2) (b)	$50,300	$46,700
Receivable turnover (a / b)	14.05	9.85
3) Inventory turnover:	2018	2017
Cost of Goods Sold (a)	$448,700	$300,800
Average inventory ($100,000 + $85,100/2); ($85,100 + $63,700/2)	$92,550	$74,400
Inventory turnover (a / b)	4.85	4.04
4) Debt to total assets:	2018	2017
Total Liabilities (a)	$241,400	$165,000
Total Assets (b)	$736,900	$592,000
Debt to total assets (a / b)	0.33	0.28
5) Times interest earned:	2018	2017
Net Income	$78,320	$57,480
Add: Income Tax Expense	$19,580	$14,370
Income before tax	$97,900	$71,850
Add: Interest Expense	$10,100	$3,950
Income before interest and tax (a)	$108,000	$75,800
Interest Expense (b)	$10,100	$3,950
Time Interest Earned Ratio (a / b)	10.69	19.19

Note: As per Chegg guidelines, the first four sub parts were answered but i have answered five sub parts, hence, please post the remaining sub parts separately.