Answer:
Explanation:
1)Current ratio = Current assets / Current liabilities
Current assets = 15465 + 72170+ 61860 = 149,495
Current liabilities -51550 +15465 =67015
Current ratio = 149495/67015 = 2.23.
2)Account receivable turnover = net credit sales /Average receivable
Average receivable = 61680+72170= 133850/2= 66925
393100/66925 = 5.87 times
3)Average collection period days = Average accounts receivable / credit sales*365
= 66925/393100*365 = 62.14 days
4) Inventory turnover times = cost of goods sold / average inventory
Average inventory = 61860+ 51550/2= 56705
207600/56705= 3.66 times
5)Days in inventory - Average inventory /cost of goods sold*365
56705/207600*365=99.69
6)Free cash flow = Net cash - cash outflow
=57200-29300-15200
=$12700
Answer:
a. Current ratio = current assets / current liabilities = $149,495 / $51,550 = 2.9
b. Account receivable turnover = net credit sales / average accounts receivables = $365,100 / [($72,170 + $61,860)/2] = $365,100 / $66,925 = 5.46 times
c. Average collection period days = 365 / accounts receivable turnover = 365 / 5.45536 = 66.9 days
d. Inventory turnover = cost of goods sold / average inventory = $207,600 / [($61,860 + $51,550)/2] = $207,600 / $56,705 = 3.66 times
e. Days in inventory days = 365 / inventory turnover = 365 / 3.66105 = 99.7 days
f. Free cash flow $:
net cash provided by operating activities $57,200
net cash from investing activities ($29,300)
net cash from financing activities ($15,200)
free cash flow 2017 = $12,700
