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Question
Selected balances from a company's financial statements are shown below:
| Dec. 31, 2013 | Dec. 31, 2014 | For the Year 2014 | |
| Merchandise inventory | $ 15,000 | $ 20,000 | |
| Accounts payable | 32,000 | 26,000 | |
| Salaries payable | 4,400 | 3,000 | |
| Accounts receivable | 24,000 | 21,000 | |
| Total assets | 234,000 | 286,000 | |
| Sales (all on credit) | $312,000 | ||
| Cost of goods sold | 165,600 | ||
| Salaries expense | 48,000 | ||
| Other expenses | 75,000 | ||
| Net income | 24,000 |
Use the information above to calculate the following current year ratios:
(a) 2014 inventory turnover.
(b) Days' sales uncollected at Dec. 31, 2014.
(c) 2014 profit margin.
(d) 2011 return on total assets.
Answer
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