apter 13 Graded Exam × Meet the Applegates (19 × MG her-Google Search ezto.mhedu
ID: 2585860 • Letter: A
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apter 13 Graded Exam × Meet the Applegates (19 × MG her-Google Search ezto.mheducation.com/hm.tpx 6.00 points Problem 13-165 [LO 13-4, LO 13-5] The financial information below presents selected information from the financial statements of Pelican Company. Sales revenue during the current year was $13,540,300 and cost of goods sold was $8,909,195 All of Pelican's sales are made on account and are due within 30 days. Accounts receivable Inventory Total current assets Total assets Total current liabilities Total liabilities Prior Year Current Year Cash and cash equivalents S 560,330 615,780 4,630,000 3,808,000 928,360 1,247,440 8,500,030 8,360,100 11,108,020 10,988,000 7,480,300 6,956,000 8,457,900 8,256,700 Calculate the following a. Current ratios as of the end of the current and prior year (Round your answers to 2 decimal places.)Explanation / Answer
a.
Current ratio = Total current assets / Total current liabilities
Current year = 8,360,100 / 6,956,000 = 1.20 (Answer)
Prior year = 8,500,030 / 7,480,300 = 1.14 (Answer)
b.
Receivable turnover (current year) = Sales revenue / Average account receivable
= 13,540,300 / {(4,630,000 + 3,808,000) ÷ 2}
= 13,540,300 / 4,219,000
= 3.21 (Answer)
c.
Days to collect (current year) = 365 days in a year / Receivable turnover ratio
= 365 / 3.21
= 113.71 days (Answer)
d.
Inventory turnover ratio (current year) = Cost of goods sold / Average inventory
= 8,909,195 / {(928,360 + 1,247,440) ÷ 2}
= 8,909,195 / 1,087,900
= 8.19 (Answer)
e.
Days to sell (current year) = 365 days in a year / Inventory turnover ratio
= 365 / 8.19
= 44.57 days (Answer)
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