Selected Balances from a Company's Financial Statements Are Shown Below

Essay

Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2018:
(a) accounts receivable turnover
(b) inventory turnover
(c) days' sales uncollected
(d) days' sales in inventory
(d) profit margin.
(e) return on total assets.
$$\begin{array} { l | l | l | l } & \text { Dec. 31. } & \text { Dec. 31. } & \text { For the } \\\hline \text { Accounts receivable } & 2018 & \underline { 2017 } & \text { Year 2018 } \\\hline \text { Merchandise inventory } & \$ 27,000 & \$ 24,000 & \\\hline \text { Total assets } & 25,000 & 20,000 & \\\hline \text { Accounts payable } & 296,000 & 244,000 & \\\hline \text { Salaries payable } & 26,000 & 32,000 & \\\hline \text { Sales (all on credit) } & 3,000 & 4,400 & \\\hline \text { Cost af goods sold } & & & \$ 312,000 \\\hline \text { Salaries expense } & & & 165,600 \\\hline \text { Other expenses } & & & 48,000 \\\hline \text { Net income } & & & 75,000 \\\hline\end{array}$$