Question - The 2016 income statement of Anderson Medical Supply Company reported net sales of $8 million, cost of goods sold of $4.8 million, and net income of $800,000. The following table shows the company's comparative balance sheets for 2016 and 2015:
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($ in 000s)
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2016
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2015
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Assets
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Cash
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$300
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$380
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Accounts receivable
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700
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500
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Inventory
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900
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700
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Property, plant and equipment (net)
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2,400
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2,120
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Total assets
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$4,300
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$3,700
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Liabilities and shareholders' equity
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|
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Current liabilities
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$960
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$830
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Bonds payable
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1,200
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1,200
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Paid-in-capital
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1,000
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1,000
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Retained earnings
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1,140
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370
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Total liabilities and shareholders' equity
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$4,300
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$3,700
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Required - Calculate Anderson's turnover ratios for 2016.