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Compute the receivables turnover ratios

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Reference no: EM132788396

Question - Grande Corporation's comparative balance sheets are presented below.

Grande CORPORATION Balance Sheets December 31

 

2019

2018

Cash

$9,000

$8,000

Accounts receivable

38,000

35,000

Inventory

22,500

25,500

Land

15,000

15,000

Building

100,000

90,000

Accumulated depreciation

(26,000)

(25,000)

Total

$158,500

$148,500

Accounts payable

$46,000

$50,000

Common stock

62,000

60,000

Retained earnings

50,500

38,500

Total

$158,500

$148,500

Grande's 2019 income statement included net credit sales of $400,000, cost of goods sold of $110,000, and net income of $40,000.

Required - Compute the following ratios for 2019.

(a) Current ratio.

(b) Acid-test ratio.

(c) Receivables turnover.

(d) Profit margin.

(e) Return on assets.

Reference no: EM132788396

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