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.

Compute the following ratios at December 31, 2010. (Round to 3 decimal places, e.g. 2.515.)

Current

:1

Receivables turnover

times

Average collection period

days

Inventory turnover

times

Days in inventory

days

Cash debt coverage

times

Current cash debt coverage

times

Free cash flow

$