Compute for each year the accounts receivable turnover at

Question

Exercise 1

(a) Schellhammer Corporation reported the following amounts in 2013, 2014, and 2015.

		2013			2014			2015
Current assets		$269,300			$298,923			$323,160
Current liabilities		$161,100			$169,150			$183,420
Total assets		$526,600			$620,030			$618,230

(b) Perform each of the three types of analysis on Schellhammer's current assets

Exercise 2 The following data are taken from the financial statements of Rainsberger Company.

		2015		2014
Accounts receivable (net), end of year		$576,700		$499,600
Net sales on account		4,048,600		3,050,900
Terms for all sales are 1/10, n/60.

(a) Compute for each year the accounts receivable turnover. At the end of 2013, accounts receivable (net) was $507,300.

Exercise 3 The following data are from the income statements of Haskin Company.

		2015			2014
Sales		$6,314,000			$6,280,300
Beginning inventory		932,600			837,400
Purchases		4,350,400			4,615,200
Ending inventory		1,026,300			932,600

Compute for each year the inventory turnover.

Exercise 4 Guo Company has owners' equity of $381,900 and net income of $57,700. It has a payout ratio of 30% and a return on assets of 10%.

How much did Guo pay in cash dividends, and what were its average assets?

Exercise 5 Operating data for Navarro Corporation are presented below.

		2015		2014
Net sales		$754,230		$597,940
Cost of goods sold		469,900		393,300
Selling expenses		123,710		73,000
Administrative expenses		55,640		54,760
Income tax expense		31,520		21,450
Net income		73,460		55,430

Prepare a schedule showing a vertical analysis for 2015 and 2014.

NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31
	2015				2014
	Amount		Percent		Amount		Percent
Net sales	$754,230		%		$597,940		%
Cost of goods sold	469,900		%		393,300		%
Gross profit	284,330		%		204,640		%
Selling expenses	123,710		%		73,000		%
Administrative expenses	55,640		%		54,760		%
Total operating expenses	179,350		%		127,760		%
Income before income taxes	104,980		%		76,880		%
Income taxes expense	31,520		%		21,450		%
Net income	$73,460		%		$55,430		%

Exercise 6 Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.

NORDSTORM, INC. Balance Sheet (partial)
(in millions)	End-of-Year	Beginning-of-Year
Cash and cash equivalents	$ 1,550	$ 140
Accounts receivable (net)	3,968	3,787
Inventory	1,751	1,755
Prepaid expenses	172	181
Other current assets	464	410
Total current assets	$7,905	$6,273
Total current liabilities	$3,927	$3,122

For the year, net sales were $16,103 and cost of goods sold was $10,390 (in millions).

Compute the four liquidity ratios at the end of the year.

Current ratio	:1
Acid-test ratio	:1
Accounts receivable turnover	times
Inventory turnover	times