Question

Cullumber Company has these comparative balance sheet data: CULLUMBER COMPANY Balance Sheets December 31 2017 2016 Cash $ 16,350 $ 32,700 Accounts receivable (net) 76,300 65,400 Inventory 65,400 54,500 Plant assets (net) 218,000 196,200 $376,050 $348,800 Accounts payable $ 54,500 $ 65,400 Mortgage payable (15%) 109,000 109,000 Common stock, $10 par 152,600 130,800 Retained earnings 59,950 43,600 $376,050 $348,800 Additional information for 2017: 1. Net income was $34,000. 2. Sales on account were $383,300. Sales returns and allowances amounted to $26,600. 3. Cost of goods sold was $200,600. 4. Net cash provided by operating activities was $59,000. 5. Capital expenditures were $26,400, and cash dividends were $16,500. Compute the following ratios at December 31, 2017. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.) (a) Current ratio. :1 (b) Accounts receivable turnover. times (c) Average collection period. days (d) Inventory turnover. times (e) Days in inventory. days (f) Free cash flow. $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer:

Please see details below:

Explanation:

(a) Current ratio.

Current RATIO  0,97  

(b) Accounts receivable turnover. times

Account Receivables Turnover time  5,03  

(c) Average collection period. days

Average Collection Period  72,5

(d) Inventory turnover. times

Inventory Turnover Times  3,3  

(e) Days in inventory. days

Days in Inventory  109,1  

(f) Free cash flow

Free Cash Flow  $32.600