60.1K

Verified Solution

Link Copied!

Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 33, 461 89,600 113,500 10,776 314,188 $561,525 $ 39,113 $ 39,936 62,500 50,800 82,000 59,000 10,267 4,437 290,193 245,227 $ 484,073 $ 399,400 $141,218 $ 82,626 $ 53,248 106,622 162,500 151,185 $561,525 112,450 89,150 162,500 162,500 126,497 94,502 $ 484,073 $ 399,400 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $ 729,983 $ 445,290 226,295 12,410 9,490 693,485 $ 36, 498 1 Yr Ago $ 576,047 $ 374,431 145,740 13,249 8,641 542,061 $ 33,986 $ 2.09 $ 2.25 Required 3A Required 3B Compute inventory turnover. Choose Numerator: = Inventory Turnover 1 Choose Denominator: / Inventory Turnover Inventory turnover II times Current Yr: 1 Yr Ago: = times Complete this question by entering your answers in the tabs below. Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover

Answer & Explanation Solved by verified expert

See Answer