Financial statements for Askew Industries for 2018 are shown below (in $000s): ...
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Accounting
Financial statements for Askew Industries for 2018 are shown below (in $000s):
2018 Income Statement
Sales $ 8,700
Cost of goods sold (6,175 )
Gross profit 2,525
Operating expenses (1,875 )
Interest expense (150 )
Tax expense (200 )
Net income $ 300
Comparative Balance Sheets
Dec. 31
2018 2017
Assets
Cash $ 550 $ 450
Accounts receivable 550 350
Inventory 750 550
Property, plant, and equipment (net) 1,500 1,600
$ 3,350 $ 2,950
Liabilities and Shareholders Equity
Current liabilities $ 800 $ 550
Bonds payable 1,150 1,150
Paid-in capital 550 550
Retained earnings 850 700
$ 3,350 $ 2,950
Required:
Calculate the following ratios for 2018. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.)
1. Inventory turnover ratio
2. Average days in inventory
3. receivables turnover ratio
4. Average collection period
5. Asset turnover ratio
6. Profit margin on sales
7. Return on Assets
8. Return on shareholders Equity
9. Equity multiplier
10. Return on Shareholders Equity ( using the Dupont framework)
Answer & Explanation
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