18 5:00 points The financial information below presents selected information fro

Question

18 5:00 points The financial information below presents selected information from the financial statements of Pelican Company. Sales revenue during the current year was $13,380,300 and cost of goods sold was $8,913,195 All of Pelican's sales are made on account and are due within 30 days. Prior Year Current Year Cash and cash equivalents S568,330 $ 631,780 3,816,000 1,271,440 8,300,030 8,240,100 11,116,020 10,996,000 6,436,000 8,465,900 8,272,700 4,710,000 936,360 Accounts receivable Total current assets Total assets Total current liabilities Total liabilities 7,760,300 Calculate the following a. Current ratios as of the end of the current and prior year. (Round your answers to 2 decimal places.) Current Year Prior Year Current Ratio b. Calculate the receivables turnover ratio for the current year. (Round your answer to 2 decimal places.) Receivables Turnover

Explanation / Answer

13380300/4263000*=3.14

*(4710000+3816000)/2=4263000

8913195/1103900*=8.07

*(936360+1271440)/2=1103900

Formula's Current year Prior year a Current ratio = Current Asset/Current Liablities 8240100/6436000=1.28 8300030/7760300=1.07 b Account Receivable Turnover Ratio=Net Credit Sales/Average Accounts Receivable

13380300/4263000*=3.14

*(4710000+3816000)/2=4263000

c Number of days’ sales in receivables = 365/Account Receivable Turnover Ratio 365/3.14=116 days d Inventory turnover= Cost of Goods Sold/Average Inventory

8913195/1103900*=8.07

*(936360+1271440)/2=1103900

e Number of days’ sales in inventory=Ending Inventory/Cost of Goods Sold*365 (1271440/8913195)*365=52days

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