Please help me with parts A3 and A6. I tried 840,000 for A3 and it's wrong, and I do not remember the formula for A6. Thank you!
At the end of the year, the following information was obtained from the accounting records of Harrison Electronics, Incorporated:
Sales (all on credit) Cost of goods sold Average inventory Average accounts receivable Interest expense Income tax expense Net income Average investment in assets Average stockholders' equity
$2,750,000 1,781,000 375,000 282,000 45,000 84,000 159,000 1,800,000 895,000
Required:
From the information given:
1. Compute the inventory turnover. Note: Round your answer to 2 decimal places.
2. Compute the accounts receivable turnover. Note: Round your answer to 2 decimal places.
3. Compute the total operating expenses.
4. Compute the gross profit percentage. Note: Round your answer to the nearest whole percentage, i.e., 0.123 as 12%.
5. Compute the return on average stockholders' equity. Note: Round your percentage answer to 1 decimal place, i.e., 0.1234 as 12.3%.
6. Compute the return on average assets.
a-1. Inventory turnover: 4.75 times
a-2. Accounts receivable turnover: 9.75 times
a-3. Total operating expenses: $411,000
a-4. Gross profit percentage: 17.8%
a-5. Return on average stockholder's equity: 17.8%
a-6. Return on average assets: 8.83%
