Homework Answers
i. Current Ratio:
Current Ratio = Current Assets ÷ Current liabilities
= 571,811 ÷ 364,078
= 1.5706
ii. Quick Ratio:
Quick ratio = (Current assets - Material Inventory-prepaid expenses) ÷ Current liabilities
= (571,811-1,873-6,148) ÷ 364,078
= 1.5485
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current ratio
quick ratio
REVIEW QUESTIONS AND EXERCISES TABLE P3.3 67 Balance Sheet, Peachtree Construction (31...
8. Given the financial statement shown here as Table P3.3 calculate the: (a) Current ratio (b)...
8. Given the financial statement shown here as Table P3.3 calculate the: (a) Current ratio (b) Quick ratio Table P3.3 Balance Sheet, Peachtree Construction (31 December 2016) Assets Current assets Cash $243,146 Accounts receivable Trade accounts 201,573 Retainage 42,147 Total accounts receivable 243,720 Material inventory 1,873 Work in process (costs and estimated earnings in excess of 76,142 billings) Prepaid expenses 6,148 Other current assets 782 Total current assets 571,811 Fixed assets Machinery and equipment 542,173 Cars and trucks 49,214 Furniture...
Assume that you have a company with this Balance Sheet Calculate Current Ratio Quick Ratio What...
Assume that you have a company with this Balance Sheet
Calculate
Current Ratio
Quick Ratio
What do each tell you about the company's financial
situation?
From the Roots Up Company Balance Sheet For the Year Ended December 31, 200X (In Thousands $223 886 214 7.5% 29.7% .06% 29.1% 7.2% 13.4% 16.7% 8.9% 39.0% 82.8% 399 497 264 1.160 2.463 402 13.5% 1.0% 0.05 3.19 18.6% 552 110 442 Current Assets Cash Accts/Notes Rec-Trade Bad Debt Reserve - Total Accts/Rec-Net Accts/Notes...
The acid-test ratio is (Round your answer to 2 decimal places.): The following partial balance sheet...
The acid-test ratio is (Round your answer to 2 decimal
places.):
The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. $ 224 bet 65 Assets Current assets: Cash Accounts receivable (net) Notes receivable Inventory Prepaid expenses Total current assets Equipment (net) 289 $ 64 172 52 200 28 516 Liabilities and Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities Total liabilities Shareholders' equity: Common stock Retained earnings Total shareholders'...
The current ratio is (Round your answer to 2 decimal places.): The following partial balance sheet...
The current ratio is (Round your answer to 2 decimal
places.):
The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. $ 228 79 Assets Current assets: Cash Accounts receivable (net) Notes receivable Inventory Prepaid expenses Total current assets Equipment (net) - 61 307 Liabilities and Equity Current liabilities: $ 61 Accounts payable 176 Other current liabilities Total current liabilities 217 Long-term liabilities 39 Total liabilities 554 Shareholders' equity: 271 Common stock Retained earnings Total...
Wu Systems has the following balance sheet. Assume that all current assets are used in operations....
Wu Systems has the following balance sheet. Assume that all current assets are used in operations. How much net operating working capital does the firm have? Cash $ 100 Accounts payable $ 200 Accounts receivable 650 Accruals 110 Inventory 550 Notes payable 590 Current assets $ 1,300 Current liabilities $ 900 Net fixed assets $ 1,000 Long-term debt 600 Common equity 300 Retained earnings 500 Total assets $ 2,300 Total liab. & equity $ 2,300 a. $1,010 b. $911 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...
Compute the (1) current ratio and the (2) quick ratio for Nikey, Inc. using the following...
Compute the (1) current ratio and the (2) quick ratio for Nikey, Inc. using the following excerpt from the balance sheet reported in a recent financial statement of Nikey, Inc. At May 31 (in millions) 2020 Current assets Cash and equivalents $6,934 Short-term investments 3,730 Accounts receivable, net 6,044 Inventories 7,807 Deferred income taxes 700 Prepaid expenses and other current assets 3,542 Total current assets $28,757 Current liabilities Current portion of long-term debt $182 Notes payable 126 Accounts payable 3,623...
McFadden Corp. reports the following balances on its December 31, 20X2, balance sheet: Amounts in Thousands:...
McFadden Corp. reports the following balances on its December 31, 20X2, balance sheet: Amounts in Thousands: Accounts payable $ 70 Accounts receivable 140 Accumulated depreciation 340 Fixed assets (net) 900 Inventory 150 Long-term debt 370 Paid in excess 160 Retained earnings 380 Total assets 1,300 Total liabilities 500 (long-term debt + current liabilities) All of the remaining accounts are listed below. Calculate the balance in each. Enter your answers in thousands. For example, an answer of $200 thousands should be...
Calculate the Quick Ratio for this year PETE'S POTATO & PASTA, INC. BALANCE SHEET ENDING DECEMBER...
Calculate the Quick Ratio for this
year
PETE'S POTATO & PASTA, INC. BALANCE SHEET ENDING DECEMBER 31st ASSETS This year Last year $ Current assets Cash and cash equivalents Accounts receivable Inventory Total current assets 10,000 35,000 25,000 70,000 10,000 30,000 20.000 60,000 $ Fixed assets Plants and machinery Less depreciation Land Intangible Assets TOTAL ASSETS 20,000 -12,000 8,000 2,000 88,000 20,000 -10,000 8,000 1,500 79,500 LIABILITIES and SHAREHOLDERS' EQUITY $ Liabilities Accounts payable Taxes payable Long-term bonds issued TOTAL...
Cullumber Corporation Balance Sheet as of December 31, 2017 Liabilities and Equity: Assets: Cash and marketable...
Cullumber Corporation Balance Sheet as of December 31, 2017 Liabilities and Equity: Assets: Cash and marketable securities Accounts payable and accruals Accounts receivable Notes payable 300,000 Inventory Total current assets Total current liabilities Long-term debt $2,000,000 Net plant and equipment Common stock Retained earnings $1,250,000 Total assets Total liabilities and equity $8,000,000 You have the following information: Debt ratio 35 % 40 days DSO Current ratio 2.17 Inventory turnover ratio 4.000 Net sales $2.43 million Cost of goods sold =...
8. Given the financial statement shown here as Table P3.3 calculate the: (a) Current ratio (b) Quick ratio Table P3.3 Balance Sheet, Peachtree Construction (31 December 2016) Assets Current assets Cash $243,146 Accounts receivable Trade accounts 201,573 Retainage 42,147 Total accounts receivable 243,720 Material inventory 1,873 Work in process (costs and estimated earnings in excess of 76,142 billings) Prepaid expenses 6,148 Other current assets 782 Total current assets 571,811 Fixed assets Machinery and equipment 542,173 Cars and trucks 49,214 Furniture...
Assume that you have a company with this Balance Sheet
Calculate
Current Ratio
Quick Ratio
What do each tell you about the company's financial
situation?
From the Roots Up Company Balance Sheet For the Year Ended December 31, 200X (In Thousands $223 886 214 7.5% 29.7% .06% 29.1% 7.2% 13.4% 16.7% 8.9% 39.0% 82.8% 399 497 264 1.160 2.463 402 13.5% 1.0% 0.05 3.19 18.6% 552 110 442 Current Assets Cash Accts/Notes Rec-Trade Bad Debt Reserve - Total Accts/Rec-Net Accts/Notes...
The acid-test ratio is (Round your answer to 2 decimal
places.):
The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. $ 224 bet 65 Assets Current assets: Cash Accounts receivable (net) Notes receivable Inventory Prepaid expenses Total current assets Equipment (net) 289 $ 64 172 52 200 28 516 Liabilities and Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities Total liabilities Shareholders' equity: Common stock Retained earnings Total shareholders'...
The current ratio is (Round your answer to 2 decimal
places.):
The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. $ 228 79 Assets Current assets: Cash Accounts receivable (net) Notes receivable Inventory Prepaid expenses Total current assets Equipment (net) - 61 307 Liabilities and Equity Current liabilities: $ 61 Accounts payable 176 Other current liabilities Total current liabilities 217 Long-term liabilities 39 Total liabilities 554 Shareholders' equity: 271 Common stock Retained earnings Total...
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...
Compute the (1) current ratio and the (2) quick ratio for Nikey, Inc. using the following excerpt from the balance sheet reported in a recent financial statement of Nikey, Inc. At May 31 (in millions) 2020 Current assets Cash and equivalents $6,934 Short-term investments 3,730 Accounts receivable, net 6,044 Inventories 7,807 Deferred income taxes 700 Prepaid expenses and other current assets 3,542 Total current assets $28,757 Current liabilities Current portion of long-term debt $182 Notes payable 126 Accounts payable 3,623...
Calculate the Quick Ratio for this
year
PETE'S POTATO & PASTA, INC. BALANCE SHEET ENDING DECEMBER 31st ASSETS This year Last year $ Current assets Cash and cash equivalents Accounts receivable Inventory Total current assets 10,000 35,000 25,000 70,000 10,000 30,000 20.000 60,000 $ Fixed assets Plants and machinery Less depreciation Land Intangible Assets TOTAL ASSETS 20,000 -12,000 8,000 2,000 88,000 20,000 -10,000 8,000 1,500 79,500 LIABILITIES and SHAREHOLDERS' EQUITY $ Liabilities Accounts payable Taxes payable Long-term bonds issued TOTAL...
Cullumber Corporation Balance Sheet as of December 31, 2017 Liabilities and Equity: Assets: Cash and marketable securities Accounts payable and accruals Accounts receivable Notes payable 300,000 Inventory Total current assets Total current liabilities Long-term debt $2,000,000 Net plant and equipment Common stock Retained earnings $1,250,000 Total assets Total liabilities and equity $8,000,000 You have the following information: Debt ratio 35 % 40 days DSO Current ratio 2.17 Inventory turnover ratio 4.000 Net sales $2.43 million Cost of goods sold =...
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