Question -
Frizell Company has the following comparative balance sheet data.
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FRIZELL COMPANY Balance Sheets December 31
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2017
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2016
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Cash
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$ 14,200
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$ 29,500
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Accounts receivable (net)
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69,400
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60,000
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Inventory
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60,000
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49,700
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Plant assets (net)
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197,000
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180,500
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$340,600
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$319,700
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Accounts payable
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$49,400
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$59,900
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Mortgage payable (6%)
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101,500
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101,500
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Common stock, $10 par
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144,500
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122,000
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Retained earnings
|
45,200
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36,300
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$340,600
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$319,700
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Additional information for 2017:
1. Net income was $25,000.
2. Sales on account were $405,500. Sales returns and allowances were $20,200.
3. Cost of goods sold was $195,000.
Compute the following ratios at December 31, 2017.
(a) Current ratio
(b) Acid-test ratio
(c) Accounts receivable turnover
(d) Inventory turnover