Problem - Frizell Company has the following comparative balance sheet data.
Additional information for 2017:
1. Net income was $25,800.
2. Sales on account were $407,000. Sales returns and allowances were $20,700.
3. Cost of goods sold was $199,400.
|
FRIZELL COMPANY Balance Sheets December 31
|
|
2017
|
2016
|
|
Cash
|
$ 15,100
|
$ 29,700
|
|
Accounts receivable (net)
|
70,300
|
59,000
|
|
Inventory
|
60,900
|
49,300
|
|
Plant assets (net)
|
195,000
|
178,500
|
|
$341,300
|
$316,500
|
|
Accounts payable
|
$50,600
|
$60,900
|
|
Mortgage payable (6%)
|
101,500
|
101,500
|
|
Common stock, $10 par
|
144,000
|
118,500
|
|
Retained earnings
|
45,200
|
35,600
|
|
$341,300
|
$316,500
|
Compute the following ratios at December 31, 2017.
(a) Current ratio
(b) Acid-test ratio
(c) Accounts receivable turnover
(d) Inventory turnover