For the year ended December 31, 2021, assume all sales are on credit, and 360 days per year. Required to Compute the following Ratio: 1. Current ratio. 2. Quick ratio. 3. Debt-to-total assets ratio. 4. Assets turnover. 5. Inventory turnover.

For the year ended December 31, 2021, assume all sales are on credit, and 360 days per year. Required to Compute the following Ratio: 1. Current ratio. 2. Quick ratio. 3. Debt-to-total assets ratio. 4. Assets turnover. 5. Inventory turnover.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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Question

Problem 1
LAKELAND Company has Sales of $2,250,000. The cost of goods sold for the year were
65% of Sales and Company's year-end balance sheets is shown below :
Assets
LAKELAND Company
Balance Sheet 2021
Cash
Accounts receivable
Marketable securities
Inventories
Plant and Equipment
Total Assets (100%)... $1,000,000
For the year ended December 31, 2021, assume all sales are on credit, and 360 days per year.
Required to Compute the following Ratio:
5%
27%
8%
25%
35%
Required:
1. Current ratio.
2. Quick ratio.
3. Debt-to-total assets ratio.
4. Assets turnover.
5. Inventory turnover.
Liabilities and Stockholders' Equity
Accounts payable
Accrued taxes
=
23%
8%
12%
12%
20%
25%
Bond payable (long term)
Common Stock
Paid- in- Capital
Retained Earning
Total Liabilities and SOE (100%)... $1,000,000
Problem 2
Assume that you need to borrow $180,000 from local bank to invested on the department
store and consider a 2 years loan with Semiannual payment with the interest rate 8% per
year.
a. What is the semiannual payment ?
b. Prepare an amortization schedule table with semiannual payment for 2 years.

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