Analysis of financial statement using ratio analysis.
Alegro Manufacturing Co.
Partial comparative balance sheet and income statement information for the Alegro Manufacturing Co. for the years ending 2006 and 2007 is given below:
|
|
2006
|
2007
|
|
Cash
|
$6,800
|
$5,200
|
|
Marketable Securities
|
3,600
|
8,600
|
|
Accounts Receivable (net)
|
22,400
|
17,800
|
|
Inventory
|
27,200
|
24,800
|
|
Total Current Assets
|
60,000
|
56,400
|
|
Accounts Payable
|
20,000
|
14,100
|
|
Net Sales
|
161,280
|
110,360
|
|
Cost of Goods Sold
|
108,800
|
101,680
|
|
Gross Margin
|
52,480
|
8,680
|
In 2005, the year-end balances for Accounts Receivable and Inventory were $16,200 and $25,600, respectively. Accounts Payable was $15,300 in 2005 and is the only current liability.
Make the following calculations, round all of your answers to one decimal place.
1. Calculate the current ratio for 2006.
2. Calculate the quick ratio for 2006.
3. Calculate receivable turnover for 2006.
4. Calculate the average days sales uncollected 2006.
5. Calculate inventory turnover for 2006.
6. Calculate the average days inventory on hand for 2006.
7. Calculate the payables turnover for 2006.
8. Calculate the average days payable for the year 2006.
9. Calculate the current ratio for 2007.
10. Calculate the quick ratio for 2007.
11. Calculate receivable turnover for 2007.
12. Calculate the average days sales uncollected for 2007.
13. Calculate inventory turnover for 2007.
14. Calculate the average days inventory on hand for 2007.
15. Calculate the payables turnover for 2007.
16. Calculate the average days payable for the year 2007.