Posted: July 12th, 2016

What is the inventory turnover?

Required
Determine which of the segments are reportable based on the following:
– Revenue Test
– Operating profit (loss) test
– Identifiable assets test

Problem 2:
The following information pertains to Walrus Inc.
Cash $60,000
Accounts receivable 170,000
Inventory 100,000
Plant assets (net) 582,000
Total assets $912,000

Accounts payable $110,000
Accrued taxes and expenses payable 42,000
Long-term debt 120,000
Common stock ($10 par) 260,000
Paid-in capital in excess of par 50,000
Retained earnings 330,000
Total equities $912,000

Net sales (all on credit) $2,000,000
Cost of goods sold 1,400,000
Net income 120,000

Required:
Compute the following:
(ignore Avg for balance sheet accounts)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity