Armada Company has these comparative balance sheet data?

Really could use any help or advice on tools on how to simplify to getting to the answers. ty Armada Company has these comparative balance sheet data: ARMADA COMPANY Balance Sheets December 31 2010 2009 Cash $ 25,000 $ 30,000 Receivables (net) 65,000 60,000 Inventories 60,000 50,000 Plant... show more Really could use any help or advice on tools on how to simplify to getting to the answers. ty


Armada Company has these comparative balance sheet data:


ARMADA COMPANY
Balance Sheets
December 31
2010 2009
Cash $ 25,000 $ 30,000
Receivables (net) 65,000 60,000
Inventories 60,000 50,000
Plant assets (net) 200,000 180,000
$350,000 $320,000
Accounts payable $ 50,000 $ 60,000
Mortgage payable (15%) 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 60,000 40,000
$350,000 $320,000






Additional information for 2010:
1. Net income was $25,000.

2. Sales on account were $375,000. Sales returns and allowances amounted to $25,000.

3. Cost of goods sold was $198,000.

4. Net cash provided by operating activities was $48,000.

5. Capital expenditures were $25,000, and cash dividends were $18,000.



Hint: Compute selected ratios.


Instructions
Compute the following ratios at December 31, 2010.

(a) Current.

(b) Receivables turnover.

(c) Average collection period.

(d) Inventory turnover.

(e) Days in inventory.

(f) Cash debt coverage.

(g) Current cash debt coverage.

(h) Free cash flow.
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