Compute the inventory turnover times


Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.) McCORD CORPORATION Income Statement For Year Ended December 31, 2011 Sales $ 348,600 Cost of goods sold 229,150 Gross profit 119,450 Operating expenses 52,500 Interest expense 3,100 Income before taxes 63,850 Income taxes 15,800 Net income $ 48,050 McCORD CORPORATION Balance Sheet December 31, 2011 Assets Liabilities and Equity Cash $ 9,000 Accounts payable $ 16,500 Short-term investments 7,400 Accrued wages payable 2,200 Accounts receivable, net 28,200 Income taxes payable 2,300 Notes receivable (trade)* 3,500 Long-term note payable, secured Merchandise inventory 31,150 by mortgage on plant assets 62,400 Prepaid expenses 1,650 Common stock 90,000 Plant assets, net 152,300 Retained earnings 59,800 Total assets $ 233,200 Total liabilities and equity $ 233,200 * These are short-term notes receivable arising from customer (trade) sales.

Required: Compute the following. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the "%" sign in your response):

(1) Current ratio to

(2) Acid-test ratio to

(3) Days' sales uncollected days

(4) Inventory turnover times

(5) Days' sales in inventory days

(6) Debt-to-equity ratio to

(7) Times interest earned times

(8) Profit margin ratio %

(9) Total asset turnover times

(10) Return on total assets %

(11) Return on common stockholders' equity %

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Accounting Basics: Compute the inventory turnover times
Reference No:- TGS0715878

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