Reference no: EM131630075
Question - Frizell Company has the following comparative balance sheet data
Frizell Company Balance Sheets December 31 2017 2016
Cash $15,000 $30,000
Accounts receivable (net) 70,000 60,000
Inventory 60,000 50,000
Plant assets (net) 200,000 180,000
$345,000 $320,000
Accounts payable $50,000 $60,000
Mortgage payable (6%) 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 55,000 40,000
$345,000 $320,000
Additional information for 2017:
1. Net Income was $25,000
2. Sales on account were $410,000. Sales returns and allowances were $20,000
3. Cost of goods sold was $ 198,000
Instructions -
Compute the following ratios at December 31, 2017
(a) Current ratio
(b) Acid- test ration
(c) Accounts receivable turnover.
(d) Inventory turnover.