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36. The most common measure of short-term liquidity is the a. acid-test. b. current ratio. c....
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test...
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test Ratio Days in Receivable Days in Inventory Operating Profit Margin Total Asset Tumover Fixed-asset turnover Debt Ratio Times Interest Earned Return on Equity Income Statement Balance Sheet Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Gross Plant and Equipment Accumulated Depreciation Net Fixed Assets Total Assets $200,000 $60,000 $100,000 $20,000 $380,000 $802,000 -$132,000 $670,000 $1,050,000 Sales (all credit) Cost of Goods Sold...
Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current...
Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current Assets Current Liabilities = 515800 626900 = 0.82 : 1 Quick Ratio = Quick Assets Current Liabilities = 42700 + 205800 626900 = 0.40 Cash Ratio = Cash & Cash Equivalents Current Liabilities = 42700 626900 = 0.0681 : 1 2. Turnover / Activity Ratios Inventory Turnover = COGS Average Inventories...
More Info X Х a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover...
More Info X Х a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Print Done und intermediary calculations to two decimal places X XX and round your final answer to a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio b. Compute the ca: 365 days / Accounts...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature of its components. All of the following are reasons that this is true except: C A firm could have a high current ratio but not be able to meet demands for cash because inventory is salable only at discounted rices. C The balance sheet is prepared as of a particular date and the actual amount of liquid assets may vary considerably from the date...
Compute the following: (1) current ratio (2) acid-test ratio (3) inventory turnover (4) Debt ratio (5)...
Compute the following:
(1) current ratio
(2) acid-test ratio
(3) inventory turnover
(4) Debt ratio
(5) debt-to-equity ratio
(6) times interest earned
(7) net profit margin
(8) total asset turnover
(9) return on total assets
(10) return on equity.
CADET CORPORATION Income Statement For Year Ended December 31, 2009 Sales ..... Cost of goods sold ........ Gross profit ............. Operating expenses ........ Interest expense Income before taxes ...... Income taxes ........... Net income ............. $456,600 297,450 159,150 99,400 3,900 55,850...
Financial ratios computed for Whittaker Inc. include the following: Current ratio 1.9 to 1 Acid-test ratio...
Financial ratios computed for Whittaker Inc. include the
following:
Current ratio
1.9
to 1
Acid-test ratio
1.4
to 1
Debt/equity ratio
2.0
to 1
Inventory turnover
3.6
times
Accounts receivable turnover
5.4
times
Times interest earned
4.60
times
Gross profit ratio
40
%
Return on investment
7.17
%
Earnings per share
$
3.40
All sales during the year were made on account. Cash
collections during the year exceeded sales by $13,000, and no
uncollectible accounts were written off.
The balance...
Which of the statements below is FALSE? A) The acid ratio test equals current assets minus...
Which of the statements below is FALSE? A) The acid ratio test equals current assets minus inventories divided by current liabilities. B) Examples of liquidity ratios include the current ratio, the cash coverage ratio, and the quick ratio. C) The current ratio is current assets divided by current liabilities. D) Inventory turnover equals cost of goods sold divided by inventory.
What is the debt ratio in the below problem? 4.0 Liquidity, acid test and debt ratios...
What is the debt ratio in the below problem? 4.0 Liquidity, acid test and debt ratios The person in charge of the finances of the company MGT, S.A. wants to know the company's situation concerning the industrial sector to which it belongs. For this, it has the following information regarding the industry: General liquidity ratio is 1.55; the acid test is 1.20, and the ratio between the available and the current liabilities is 0.95. The debt ratio stands at 1.25....
Financial ratios computed for Whittaker Inc. include the following: Current ratio 1.9 to 1 Acid-test ratio...
Financial ratios computed for Whittaker Inc. include the
following:
Current ratio
1.9
to 1
Acid-test ratio
1.4
to 1
Debt/equity ratio
2.0
to 1
Inventory turnover
3.6
times
Accounts receivable turnover
5.4
times
Times interest earned
4.60
times
Gross profit ratio
40
%
Return on investment
7.17
%
Earnings per share
$
3.40
All sales during the year were made on account. Cash
collections during the year exceeded sales by $13,000, and no
uncollectible accounts were written off.
The balance...
Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data...
Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data were abstracted from a recent financial statement: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 180,000 $1,580,000 3.0 2.40 1.5 Required: Compute the long-term liabilities for Bronco: Long-term liabilities
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test Ratio Days in Receivable Days in Inventory Operating Profit Margin Total Asset Tumover Fixed-asset turnover Debt Ratio Times Interest Earned Return on Equity Income Statement Balance Sheet Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Gross Plant and Equipment Accumulated Depreciation Net Fixed Assets Total Assets $200,000 $60,000 $100,000 $20,000 $380,000 $802,000 -$132,000 $670,000 $1,050,000 Sales (all credit) Cost of Goods Sold...
More Info X Х a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Print Done und intermediary calculations to two decimal places X XX and round your final answer to a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio b. Compute the ca: 365 days / Accounts...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature of its components. All of the following are reasons that this is true except: C A firm could have a high current ratio but not be able to meet demands for cash because inventory is salable only at discounted rices. C The balance sheet is prepared as of a particular date and the actual amount of liquid assets may vary considerably from the date...
Compute the following:
(1) current ratio
(2) acid-test ratio
(3) inventory turnover
(4) Debt ratio
(5) debt-to-equity ratio
(6) times interest earned
(7) net profit margin
(8) total asset turnover
(9) return on total assets
(10) return on equity.
CADET CORPORATION Income Statement For Year Ended December 31, 2009 Sales ..... Cost of goods sold ........ Gross profit ............. Operating expenses ........ Interest expense Income before taxes ...... Income taxes ........... Net income ............. $456,600 297,450 159,150 99,400 3,900 55,850...
Financial ratios computed for Whittaker Inc. include the
following:
Current ratio
1.9
to 1
Acid-test ratio
1.4
to 1
Debt/equity ratio
2.0
to 1
Inventory turnover
3.6
times
Accounts receivable turnover
5.4
times
Times interest earned
4.60
times
Gross profit ratio
40
%
Return on investment
7.17
%
Earnings per share
$
3.40
All sales during the year were made on account. Cash
collections during the year exceeded sales by $13,000, and no
uncollectible accounts were written off.
The balance...
Financial ratios computed for Whittaker Inc. include the
following:
Current ratio
1.9
to 1
Acid-test ratio
1.4
to 1
Debt/equity ratio
2.0
to 1
Inventory turnover
3.6
times
Accounts receivable turnover
5.4
times
Times interest earned
4.60
times
Gross profit ratio
40
%
Return on investment
7.17
%
Earnings per share
$
3.40
All sales during the year were made on account. Cash
collections during the year exceeded sales by $13,000, and no
uncollectible accounts were written off.
The balance...
Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data were abstracted from a recent financial statement: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 180,000 $1,580,000 3.0 2.40 1.5 Required: Compute the long-term liabilities for Bronco: Long-term liabilities
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