Calculate the following for Co. XYZ: c. Average collection period (365 days) d. Times interest earned Assets: Cash and marketable securities $400,000 Accounts receivable 1,415,000 Inventories 1,847,500 Prepaid expenses 24,000 Total current assets $3,686,500 Fixed assets 2,800,000 Less: accumulated depreciation 1,087,500 Net fixed assets $1,712,500 Total assets $5,399,000 Liabilities: Accounts payable $600,000 Notes payable 875,000 Accrued taxes Total current liabilities $1,567,000 Long-term debt 900,000 Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,375,000 Selling and administrative expense 1,000,500 Depreciation expense 135,000 Interest expense Earnings before taxes $765,000 Income taxes Net income Common stock dividends $230,000 Change in retained earnings
Calculate the following for Co. XYZ:
c. Average collection period (365 days)
d. Times interest earned
Assets:
Cash and marketable securities $400,000
Inventories 1,847,500
Prepaid expenses 24,000
Total current assets $3,686,500
Fixed assets 2,800,000
Less:
Net fixed assets $1,712,500
Total assets $5,399,000
Liabilities:
Accounts payable $600,000
Notes payable 875,000
Accrued taxes
Total current liabilities $1,567,000
Long-term debt 900,000
Owner's equity
Total liabilities and owner's equity
Co. XYZ Income Statement:
Net sales (all credit) $6,375,000
Less: Cost of goods sold 4,375,000
Selling and administrative expense 1,000,500
Depreciation expense 135,000
Interest expense
Earnings before taxes $765,000
Income taxes
Net income
Common stock dividends $230,000
Change in
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