1) Financial information for Sigma Company is presented below. Calculate the
following ratios for 2021:
(a) Inventory turnover.
(b) Accounts receivable turnover.
(c) Return on total assets.
(d) Times interest earned.
(e) Total asset turnover.
2021
2020
Assets:
Cash
$ 9,000 $ 11,000
Marketable securities
$ 12,500 $
Accounts receivable
$ 19,000 $ 21,000
Inventory
$ 30,500 $ 26,000
Prepaid insurance
$ 3,000 $ 4,500
Long-term investments
$ 24,500 $ 10,000
Plant assets, net
$ 109,000 $ 112,500
Total assets
$ 207,500 $ 185,000
Net income
$ 31,125
Sales (all on credit)
$ 152,500
Cost of goods sold
$ 61,500