Based on Company’s income statement and balance sheet, determine the business’s inventory operating ratio. Express the ratio in weeks rather than as a percentage.
|
Sales Revenue |
$23,530,000 |
|
Cost of Goods Sold Expense |
-14,118,000 |
|
Gross Margin |
$9,412,000 |
|
Selling and General Expenses |
-7,722,000 |
|
Depreciating Expense |
-826,500 |
|
Operating Earnings |
$863,500 |
|
Interest Expense |
-245,000 |
|
Earnings Before Income Tax |
$618,500 |
|
Income Tax Expense |
-185,550 |
|
Net Income |
$432,950 |
|
Assets |
Liabilities & Owners’ Equity |
||
|
Cash |
$1,357,500 |
Accounts Payable |
$2,100,000 |
|
Accounts Receivable |
$2,715,000 |
Accrued Expenses Payable |
$742,500 |
|
Inventory |
$2,172,000 |
Short-term Notes Payable |
$750,000 |
|
Prepaid Expenses |
$519,750 |
Total Current Liabilities |
$3,592,500 |
|
Total Current Assets |
$6,764,250 |
Long-term Notes Payable |
$2,000,000 |
|
Property, Plant, & |
$4,575,000 |
Owners’ Equity: |
|
|
Equipment |
($1,385,000) |
Capital Stock (10,000 shares) |
$1,500,000 |
|
Accumulated Depreciation |
$3,190,000 |
Retained Earnings |
$2,861,750 |
|
Cost less Depreciation |
$9,954,250 |
Total Owners’ Equity |
$4,361,750 |
|
Total Assets |
Total Liabilities & Owners’ Equity |
$9,954,250 |
|