BUSI320 Comprehensive Problem 1 complete solutions correct answers key

Question: #8408

Liberty University BUSI 320 Comprehensive Problem 1 complete solutions correct answers key

Use the following information to answer the questions below:

note: all sales are credit sales

Income Stmt info:

2013

2014

Sales

$ 1,000,000

$ 1,050,000

Balance Sheet info:

2013-12-31

2014-12-31

Compute each of the following ratios for 2013 and 2014 and

indicate whether each ratio was getting "better" or "worse" from 2013 to 2014

and was "good" or "bad" compared to the Industry Avg in 2014

(round all numbers to 2 digits past the decimal place)

*Assume a 360 day year

**Inventory Turnover can be computed 2 different ways. Use the formula listed in the text

(the one the text indicates many credit reporting agencies generally use)

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Solution: #8411

BUSI320 Comprehensive Problem 1 Complete Solution

BUSI 320 Comprehensive Problem 1 Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: 2013 2014 Sales $ 1,000,000 $ 1,050,000 less Cost of Goods Sold: 400,000 424,000 Gross Profit 600,000 626,000 Operating Expenses 350,000 365,750 Earnings before Interest & Taxes 250,000 260,250 Interest exp 25,000 25,500 earnings before Taxes 225,000 234,750 Taxes 90,00...