I need parts 6-9 Group Project 3 - Team Drive X Exam Chapters 3 Changes In Vario
ID: 2516001 • Letter: I
Question
I need parts 6-9
Group Project 3 - Team Drive X Exam Chapters 3 Changes In Various Ratios Pre × © Sales Revenue $920,000 $840x + https://mybusinesscourse.com/platform/mod/quiz/attempt.php?attempt-1759046&page-17; E Menu O Adrianna Razo Changes in Various Ratios Presented below is selected information for Brimmer Company: 6 7910 ACC122:DL 01 and 02 Principles of Accounting II 11 12 13 14 15 2016 2015 Ch 1: Overview of Managerial Accounting Sales revenue Cost of goods sold Interest expense Income tax expense Net income Cash flow from operating activities Capital expenditures $920,000 $840,000 575,000 545,000 20,000 20,000 27,000 30,000 61,000 52,000 65,000 55,000 45,000 45,000 Accounts receivable (net), December 31 126,000 120,000 195,000 160,000 450,000 400,000 750,000 675,000 16 1718 Ch 2: Managerial Finish attempt.. Accounting Concepts and Cost Flows Time left 2:09:36 Ch 3: Cost Accounting Systems: Job Order Costing Ch 4: Cost Accounting Systems: Process Inventory, December 31 Stockholders' equity, December 31 Total assets, December 31 Costing Ch 5: Activity-Based Required Calculate the following ratios for 2016. The 2015 results are given for comparative purposes. Round answers to one decimal place. Use 365 days in a year Costing Ch 6: Cost-Volume- Profit Relationships 2015 2016 1. Gross profit percentage 35.5% 37.5 % Ch 7: Variable Costing: A Tool for Decision Making 2. Return on assets 8.3% 8.6 % 3. Return on sales 6.2% 6.6 % Ch 8: Relevant Costs and Short-Term Decision Making 4. Return on common stackholders' equityExplanation / Answer
6) Average Collection Period for 2016 = 365 days/Accounts Receivable Turnover
= 365 days/7.5 = 48.7 days
7) Inventory Turnover for 2016 = Cost of goods sold/Average Inventory
Average Inventory = (Inventory 2015+Inventory 2016)/2
= ($160,000+$196,000)/2 = $178,000
Inventory Turnover = $575,000/$178,000 = 3.23
8) Times Interest Earned Ratio for 2016 = Net Income before Interest and Income Tax/Interest Expense
Net Income before Interest and Income Tax = Net Income+Income Tax+Interest Expense
= $61,000+$27,000+$20,000 = $108,000
Times Interest Earned Ratio for 2016 = $108,000/$20,000 = 5.4
9) Operating cash flow to capital expenditures ratio = Cash flow from operating activities/Capital Expenditures
= $65,000/45,000 = 1.44