Compute the ratios for 2008

Assignment Help Financial Accounting

Reference no: EM1314527

Computation of various balance sheet ratios.

Scully Corporation's comparative balance sheets are presented below.

SCULLY CORPORATION
Balance Sheets
31-Dec
	2008	2007
Cash	$4,300	$3,700
Accounts receivable	21,200	23,400
Inventory	10,000	7,000
Land	20,000	26,000
Building	70,000	70,000
Accumulated depreciation	-15,000	-10,000
Total	$110,500	$120,100
Accounts Payable	$12,370	$31,100
Common Stock	75,000	69,000
Retained earnings	23,130	20,000
Total	$110,500	$120,100

Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions

Compute the following ratios for 2008.
a) Receivables turnover= Net credit sales/ Average net receivables
b) Inventory turnover

Inventory turnover = Cost of goods sold / Average inventory

Reference no: EM1314527

Questions Cloud

Estimate the p-values using excel function : In Excel, which of the following functions is used to conduct a hypothesis test (using the p -value) for a population variance

Ratio analysis from given income statement : Ratio analysis from given income statement - What are Lucrative's Net Profit Margin for the year ending December 31, 2005 and what are Lucrative 's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending Decembe..

Explain how much will the university receive when it issues : Explain How much will the university receive when it issues the bond and the stated interest rate is 8 percent, but rates have risen to 10 percent in the market

Validating the assumption of f-test : To avoid the problem of not having access to Tables of F distribution with values given for the lower tail, the numerator of the test statistic should be the one with:

Compute the ratios for 2008 : Compute the following ratios for 2008. Receivables turnover= Net credit sales/ Average net receivables and Inventory turnover

Banks reserve and effects of multiplier on economy : Describe the creation of money from excess reserves and multiple deposit expansion in banking system. How does the multiplier affect the supply of money?

Explain what is the difference in current market prices : Explain what is the difference in current market prices of the two bonds and the Burger King bond has an annual coupon rate of 8 percent and matures 20 years from today

Independent samples t test and levene test : See if there is a difference in their means and variances.

Computation of current ratio and acid test ratio : Computation of current ratio and acid test ratio - Evaluate the following ratios for 2008 Current ratio, Acid-test ratio.

User Account

All Pages