Based on the financial statements for Jackson Enterprises (income statement, statement of owner's equity, and balance sheet) shown below, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,600. Assume 365 days per year.

Question

Working capital
Current ratio
Quick ratio
Return on owner's equity
Accounts receivable turnover and average number of days required to collect receivables
Inventory turnover and average number of days required to sell inventory

Answer 1

Based on the financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) shown below, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,600. Assume 365 days per year.

1.Working capital
2.Current ratio
3.Quick ratio
4.Return on owner's equity
5.Accounts receivable turnover and average number of days required to collect receivables
6.Inventory turnover and average number of days required to sell inventory

Answer 2

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