Sunland Medical manufactures hospital beds and other institutional…
Question Answered step-by-step Sunland Medical manufactures hospital beds and other institutional… Sunland Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow. Sunland MedicalComparative Balance SheetAs of December 31 2020 2019 Assets Current assets Cash $390,000 $417,450 Accounts receivable, net 1,079,000 776,450 Inventory 729,000 681,100 Other current assets 381,400 247,100 Total current assets 2,579,400 2,122,100 Property, plant, & equipment, net 8,659,740 8,439,815 Total assets $11,239,140 $10,561,915 Liabilities and Stockholders’ Equity Current liabilities $3,178,000 $2,846,050 Long-term debt 3,702,700 3,892,600 Total liabilities 6,880,700 6,738,650 Preferred stock, $5 par value 58,900 58,900 Common stock, $0.25 par value 104,600 103,850 Retained earnings 4,194,940 3,660,515 Total stockholders’ equity 4,358,440 3,823,265 Total liabilities and stockholders’ equity $11,239,140 $10,561,915 Sunland MedicalComparative Income Statement and Statement of Retained EarningsFor the Year 2020 2019 Sales revenue (all on account) $10,177,200 $9,614,000 Cost of goods sold 5,611,950 5,298,800 Gross profit 4,565,250 4,315,200 Operating expenses 2,840,200 2,634,150 Net operating income 1,725,050 1,681,050 Interest expense 300,300 308,600 Net income before taxes 1,424,750 1,372,450 Income taxes (30%) 427,425 411,735 Net income $997,325 $960,715 Dividends paid Preferred dividends 29,550 29,450 Common dividends 433,350 413,100 Total dividends paid 462,900 442,550 Net income retained 534,425 518,165 Retained earnings, beginning of year 3,660,515 3,142,350 Retained earnings, end of year $4,194,940 $3,660,515 (a-d)Correct answer iconYour answer is correct. Calculate the following liquidity ratios for 2020. (If working capital is negative then enter with a negative sign preceding the number or parentheses, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.) a.Working capital $ b.Current ratio c.Acid-test ratio d.Accounts receivable turnover times eTextbook and Media Attempts: 1 of 3 used (e-f) Calculate the following liquidity ratios for 2020. (Round average collection period to 0 decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a.Average collection period daysb.Inventory turnover times eTextbook and Media Save for LaterAttempts: 0 of 3 usedSubmit Answer (g) Calculate average days to sell inventory for 2020. (Round answer to 0 decimal places, e.g. 25. Use 365 days for calculation.) Average days to sell inventory days eTextbook and Media Accounting Business Managerial Accounting ACC 650 Share QuestionEmailCopy link Comments (0)
