157.The following data are available for Martin Solutions, Inc.
|
Year 2
|
Year 1
|
Sales
|
$1,139,600
|
$1,192,320
|
Beginning inventory
|
80,000
|
64,000
|
Cost of goods sold
|
500,800
|
606,000
|
Ending inventory
|
72,000
|
80,000
|
(1)Determine for each year:
(a)The inventory turnover
(b)The number of days’ sales in inventory (Round intermediate calculation to the nearestwhole number and your final answer to one decimal place).
(2)What conclusions can be drawn from these data concerning the inventories?
158.A company reports the following:
Income before income tax$600,000
Interest expense150,000
Determine the number of times interest charges are earned. Round your answer to one decimal place.
159.The following data are taken from the balance sheet at the end of the current year.
Cash
|
$154,000
|
Accounts receivable
|
210,000
|
Inventory
|
240,000
|
Prepaid expenses
|
15,000
|
Temporary investments
|
350,000
|
Property, plant, and equipment
|
375,000
|
Accounts payable
|
245,000
|
Accrued liabilities
|
4,000
|
Income tax payable
|
10,000
|
Notes payable, short-term
|
85,000
|
Determine the (a) working capital, (b) current ratio, and (c) quick ratio. Round ratios to the nearest tenth.