Question: Lendell Company has these comparative balance sheet data:
Additional information for 2017:
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 $10,000.
Instructions: Compute the following ratios at December 31, 2017.
(a) Current ratio.
(b) Accounts receivable turnover.
(c) Average collection period.
(d) Inventory turnover.
(e) Days in inventory.
(f) Free cash flow.