3. Pudding Company has current assets of 1,500,000 with a current ratio of 1.2. and a quick ratio of 0.9. How much is Pudding's current liabilities? How much is Pudding's inventory? 4. The following ratios were computed for Tourist Company for the Asset turnover, 1.60 times Return on assets, 5% Compute for Tourist' profit margin. 5. Skateboard Company reported sales amounted to $5,000,000. During the year, average total assets were $3,000,000 with average receivables of $500,000. 30% of the sales were made on cash basis with the rest being made on credit. How much is the total assets turnover? a. b. ● ● ● ● ● Compute for the receivable turnover. Compute for days sales outstanding (average collection period). 6. Sales of Jet Company amounted to $2,000,000. Cost of sales was 60% of sales. Average inventory levels during the year was $400,000. year 2014: Compute for inventory turnover. Compute for average days in inventory (average inventory period).

3. Pudding Company has current assets of 1,500,000 with a current ratio of 1.2. and a quick ratio of 0.9. How much is Pudding's current liabilities? How much is Pudding's inventory? 4. The following ratios were computed for Tourist Company for the Asset turnover, 1.60 times Return on assets, 5% Compute for Tourist' profit margin. 5. Skateboard Company reported sales amounted to $5,000,000. During the year, average total assets were $3,000,000 with average receivables of $500,000. 30% of the sales were made on cash basis with the rest being made on credit. How much is the total assets turnover? a. b. ● ● ● ● ● Compute for the receivable turnover. Compute for days sales outstanding (average collection period). 6. Sales of Jet Company amounted to $2,000,000. Cost of sales was 60% of sales. Average inventory levels during the year was $400,000. year 2014: Compute for inventory turnover. Compute for average days in inventory (average inventory period).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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