Answer the following questions relating to the year ended


Problem - Selected information from the comparative financial statements of Aviles Company for the year ended December 31 appears below:

2011 2010

Accounts receivable (net) $ 175,000 $200,000

Inventory 130,000 150,000

Total assets 1,100,000 800,000

Current liabilities 140,000 110,000

Long-term debt 410,000 300,000

Net credit sales 800,000 700,000

Cost of goods sold 600,000 530,000

Interest expense 40,000 25,000

Income tax expense 60,000 29,000

Net income 150,000 85,000

Net cash provided by operating activities 220,000 135,000

Instructions: Answer the following questions relating to the year ended June 30, 2011. Show computations.

The inventory turnover ratio for 2011 is __________.

The number of times interest earned ratio in 2011 is __________.

The receivables turnover ratio for 2011 is __________.

The return on assets ratio for 2011 is __________.

The current cash debt coverage ratio for 2011 is __________.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Answer the following questions relating to the year ended
Reference No:- TGS02611098

Now Priced at $25 (50% Discount)

Recommended (96%)

Rated (4.8/5)