Compute the following ratios or relationships of Leland Inc.


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Compute the following ratios or relationships of Leland Inc. Assume that the ending account balances are representative unless the information provided indicates differently. (1) Current ratio. (2) Inventory turnover. (3) Receivables turnover. (4) Earnings per share. (5) Profit margin on sales. (6) Rate of return on assets on December 31, 2012. (b) Indicate for each of the following transactions whether the transaction would improve, weaken, or have no effect on the current ratio of Leland Inc. at December 31, 2012. (1) Write off an uncollectible account receivable, $2,200. (2) Repurchase common stock for cash. (3) Pay $40,000 on notes payable (short-term). (4) Collect $23,000 on accounts receivable. (5) Buy equipment on account. (6) Give an existing creditor a short-term note in settlement of account. (Kieso 761) Kieso. Intermediate Accounting, 14th Edition. John Wiley & Sons. . Student
posted a question ยท Jul 22, 2012 at 5:08pm

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