he following income statement and balance sheets for Laser World are provided:Laser WorldIncome StatementFor the year-ended December 31, 2021Sales revenue$2,200,000Cost of goods sold 1,500,000Gross profit700,000 Expenses:? Operating expenses350,000 Depreciation expense70,000 Loss on sale of land5,000 Interest expense25,000 Income tax expense60,000 Total expenses 510,000Net income$190,000Laser WorldBalance SheetsDecember 31Assets20212020Current assets:?? Cash$120,000 $112,000 Accounts receivable90,000 70,000 Inventory120,000 100,000 Prepaid rent10,000 10,000 Long-term assets:?? Land260,000 200,000 Equipment350,000 210,000 Accumulated
depreciation (70,000) (42,000)Total assets$880,000 $660,000 Liabilities and Stockholders' EquityCurrent liabilities:?? Accounts payable$55,000 $75,000 Interest payable8,000 7,000 Income tax payable15,000 12,000 Long-term liabilities:?? Notes payable400,000 300,000 Stockholders' equity:?? Common stock200,000 200,000 Retained earnings 202,000 66,000 Total liabilities and equity$880,000 $660,000 Assuming that all sales were on account, calculate the following risk ratios for 2021 (round to one decimal place):1. Receivables turnover ratio2. Average collection period3. Inventory turnover ratio4. Average days in inventory5. Current ratio6. Acid-test ratio7. Debt to equity ratio8. Times interest earned ratio
What will be an ideal response?
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Plant assets refer to nonphysical assets that are used in the operations of a business.
Answer the following statement true (T) or false (F)
Which of the following is an advantage of activity–based costing systems over volume–based cost systems?
a. Activity based costing provides more accurate cost information than volume–based cost systems. b. Activity based costing is cheaper to implement than volume–based cost systems. c. Activity based costing provides allocates more than their fair share of overhead costs to low–volume products than volume–based cost systems. d. Activity based costing is easier to implement in companies that have relatively higher proportions of non–unit–level costs.
Leona is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Leona is most likely searching for a(n) ________ solution to her problem.
A. statistical B. optimal C. experimental D. ready-made E. custom-made
Hardin (1968) described the tragedy of the commons as a dilemma arising when the common good does not align perfectly with the good of individual entities
Indicate whether the statement is true or false.