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Use the following information to answer items 5 - 7:|
At December 31 a company's records show the following information:
|Cash ||$ 10,000|
|Accounts Receivable ||30,000|
|Prepaid Insurance ||6,000|
|Long-term Assets ||200,000|
|Accounts Payable ||30,000|
|Notes Payable due in 10 months ||25,000|
|Wages Payable ||5,000|
|Long-term Liabilities ||70,000|
|Stockholders' (Owner's) Equity ||196,000|
Use the following information to answer items 8 - 11:|
For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year its Accounts Receivable were $86,000 and its Inventory was $110,000.
||The inventory turnover ratio for the year was|
||The accounts receivable turnover ratio for the year was|
||On average how many days of sales were in Inventory during the year?|
Use the following information for items 12 and 13:|
A company's net income after tax was $400,000 for its most recent year. The company's income statement included Income Tax Expense of $140,000 and Interest Expense of $60,000. At the beginning of the year the company's stockholders' equity was $1,900,000 and at the end of the year it was $2,100,000.
||What is the times interest earned for the company?|
||What is the after-tax return on stockholder's equity for the year?|
||A corporation's excellent reputation will be listed among the corporation's assets on its balance sheet.
||The current market value of a corporation is approximately the amount reported on the balance sheet as stockholders' equity.
||Free cash flow is the cash provided by operating activities minus the cash used by financing activities.
||The quality of a company's earnings are suspect when the company's net income is more than the cash flow from which activities?|
||A balance sheet which reports percentages of total assets instead of dollar amounts is referred to as a ___________ – ________ balance sheet