Retained earnings Treasury stock Total liabilities and stockholders' equity 59,691 (144,000) $ 1,895,072 34,350 0 $ 110,450 As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child. Required: 1. Calculate the following risk ratios for 2025. (Use 365 days in a year. Round your intermediate calculations and final answers decimal place.) a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales.) b. Average collection period c. Inventory turnover ratio. d. Average days in inventory e. Current ratio. f. Acid-test ratio. (Hint: There are no current investments.) g. Debt to equity ratio. h. Times interest earned ratio. D times days times days 8.1 % times

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.2P
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Retained earnings
Treasury stock
Total liabilities and stockholders' equity
59,691
(144,000)
$ 1,895,072
34,350
0
$ 110,450
As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzie were able to use the
money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities,
ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child.
Required:
1. Calculate the following risk ratios for 2025. (Use 365 days in a year. Round your intermediate calculations and final answers
decimal place.)
a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales.)
b. Average collection period
c. Inventory turnover ratio.
d. Average days in inventory
e. Current ratio.
f. Acid-test ratio. (Hint: There are no current investments.)
g. Debt to equity ratio.
h. Times interest earned ratio.
D
times
days
times
days
8.1
%
times
Transcribed Image Text:Retained earnings Treasury stock Total liabilities and stockholders' equity 59,691 (144,000) $ 1,895,072 34,350 0 $ 110,450 As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child. Required: 1. Calculate the following risk ratios for 2025. (Use 365 days in a year. Round your intermediate calculations and final answers decimal place.) a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales.) b. Average collection period c. Inventory turnover ratio. d. Average days in inventory e. Current ratio. f. Acid-test ratio. (Hint: There are no current investments.) g. Debt to equity ratio. h. Times interest earned ratio. D times days times days 8.1 % times
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