Changes in Various Ratios Presented below is selected information for Brimmer Company: 2013 2012 Sales revenue $911,000 $840,000 Cost of goods sold 576,000 542,000 Interest expense 21,000 20,000...

Changes in Various Ratios

Presented below is selected information for Brimmer Company:

	2013	2012
Sales revenue	$911,000	$840,000
Cost of goods sold	576,000	542,000
Interest expense	21,000	20,000
Income tax expense	28,000	24,000
Net income	62,000	52,000
Cash flow from operating activities	66,000	55,000
Capital expenditures	43,000	45,000
Accounts receivable (net), December 31	127,000	120,000
Inventory, December 31	197,000	160,000
Stockholders' equity, December 31	451,000	400,000
Total assets, December 31	731,000	660,000

Required
Calculate the following ratios for 2013. The 2012 results are given for comparative purposes.

Round answers to one decimal place. Use 365 days in a year.

	2012		2013
1. Gross profit percentage	35.5%		Answer	%
2. Return on assets	8.3%		Answer	%
3. Return on sales	6.2%		Answer	%
4. Return on common stockholders' equity
(no preferred stock was outstanding)	13.9%		Answer	%
5. Accounts receivable turnover	8.0		Answer
6. Average collection period	45.6	days	Answer	days
7. Inventory turnover	3.6		Answer
8. Times-interest-earned ratio	4.8		Answer
9. Operating-cash-flow-to-capital-expenditures ratio	1.2		Answer

Jun 08, 2022

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