Question

Armada Company has these comparative balance sheet data?

Really could use any help or advice on tools on how to simplify to getting to the answers. ty


Armada Company has these comparative balance sheet data:


ARMADA COMPANY
Balance Sheets
December 31
20102009
Cash$ 25,000$ 30,000
Receivables (net)65,00060,000
Inventories60,00050,000
Plant assets (net)200,000180,000
$350,000$320,000
Accounts payable$ 50,000$ 60,000
Mortgage payable (15%)100,000100,000
Common stock, $10 par140,000120,000
Retained earnings60,00040,000
$350,000$320,000






Additional information for 2010:
1. Net income was $25,000.

2. Sales on account were $375,000. Sales returns and allowances amounted to $25,000.

3. Cost of goods sold was $198,000.

4. Net cash provided by operating activities was $48,000.

5. Capital expenditures were $25,000, and cash dividends were $18,000.



Hint: Compute selected ratios.


Instructions
Compute the following ratios at December 31, 2010.

(a) Current.

(b) Receivables turnover.

(c) Average collection period.

(d) Inventory turnover.

(e) Days in inventory.

(f) Cash debt coverage.

(g) Current cash debt coverage.

(h) Free cash flow.

3 years ago - 1 answers

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3 years ago