Reynolds Corporation’s comparative balance sheets are presented below.

McCartney Corporation had the following bond transactions during the fiscal year 2018:
May 5, 2020
Harrison Company had sales of $10,000 (100 units at $100 per)
May 5, 2020

Reynolds Corporation’s comparative balance sheets are presented below.

 

 

Reynolds CORPORATION

 

Balance Sheets

 

December 31

 

 

2018

 

2017

 

Cash

$ 10,000

 

$ 9,000

 

Accounts receivable

35,000

 

30,000

 

Inventory

25,500

 

20,000

 

Land

15,000

 

15,000

 

Building

90,000

 

90,000

 

Accumulated depreciation

(27,000)

 

(25,000)

 

    Total

$148,500

 

$139,000

 

 

 

 

 

 

Accounts payable

$ 50,000

 

$ 45,000

 

Common stock

65,000

 

60,000

 

Retained earnings

33,500

 

34,000

 

    Total

$148,500

 

$139,000

Reynolds’ 2018 income statement included net credit sales of $200,000, cost of goods sold of $120,000, and net income of $30,000.

Instructions: 

Compute the following ratios for 2018. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Profit margin. (e)Return on assets. (Round ratios to 2 decimal places and percentages to 1 decimal place.)

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp
%d bloggers like this: