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.

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.