A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows.
Assets | Liabilities & Stockholders' Equity | ||||||||
Cash | $ | 104,000 | Notes payable (due in 6 months) | $ | 45,000 | ||||
Accounts receivable | 100,000 | Accounts payable | 122,000 | ||||||
Inventory | 270,000 | Long-term liabilities | 321,000 | ||||||
Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | ||||||
Plant & equipment (net) | 570,000 | Retained earnings | 406,000 | ||||||
Other assets | 90,000 | ||||||||
Total | $ | 1,194,000 | Total | $ | 1,194,000 | ||||
During the year, the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages.
a. Compute the current ratio. (Round your answer to 2 decimal place.)
b. Compute the quick ratio. (Round your answer to 2 decimal place.)
c. Compute the working capital.
d. Compute the debt ratio. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)
e. Compute the accounts receivable turnover (all sales were on credit). (Round your answer to 2 decimal places.)
f. Compute the inventory turnover. (Round your answer to 2 decimal places.)
g. Compute the book value per share of capital stock. (Round your answer to 2 decimal places.)
a. | |
Cash | 104000 |
Accounts receivable | 100000 |
Inventory | 270000 |
Prepaid expenses | 60000 |
Current assets | 534000 |
Notes payable (due in 6 months) | 45000 |
Accounts payable | 122000 |
Current liabilities | 167000 |
Current ratio = Current assets / Current liabilities = 534000 / 167000 | 3.20 |
b. | |
Quick ratio = ( Current assets - Inventory - Prepaid expenses ) / Current liabilities = ( 534000 - 270000 - 60000 ) / 167000 | 1.22 |
c. | |
Current assets | 534000 |
(-) Current liabilities | 167000 |
Working capital | 367000 |
d. | |
Current liabilities | 167000 |
(+) Long-term liabilities | 321000 |
Total liabilities | 488000 |
Debt ratio = Total liabilities / Total assets = 488000 / 1194000 | 41% |
e. | |
Accounts receivables turnover = Credit sales / Accounts receivable = 2950000 / 100000 | 29.50 |
f. | |
Cost of goods sold = Sales - Gross profit = 2950000 - 1116000 | 1834000 |
Inventory turnover = Cost of goods sold / Inventory = 1834000 / 270000 | 6.79 |
g. | |
Capital stock, $5 par | 300000 |
(+) Retained earnings | 406000 |
Total stockholders' equity | 706000 |
Shares outstanding = Capital stock / Par value per share = 300000 / 5 | 60000 |
Book value per share of capital stock = Total stockholders' equity / Shares outstanding = 706000 / 60000 | 11.77 |
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as...
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Liabilities & Stockholders' Equity Cash $ 114,000 Notes payable (due in 6 months) $ 48,000 Accounts receivable 100,000 Accounts payable 97,000 Inventory 260,000 Long-term liabilities 316,000 Prepaid expenses 60,000 Capital stock, $5 par 300,000 Plant & equipment (net) 570,000 Retained earnings 433,000 Other assets 90,000 Total $ 1,194,000 Total $ 1,194,000 During the year, the company earned a gross profit of $1,116,000...
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Liabilities & Stockholders' Equity Cash $ 107,000 Notes payable (due in 6 months) $ 44,000 Accounts receivable 120,000 Accounts payable 118,000 Inventory 270,000 Long-term liabilities 328,000 Prepaid expenses 60,000 Capital stock, $5 par 300,000 Plant & equipment (net) 570,000 Retained earnings 427,000 Other assets 90,000 Total $ 1,217,000 Total $ 1,217,000 During the year, the company earned a gross profit of $1,116,000...
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Liabilities & Stockholders' Equity Cash $ 119,000 Notes payable (due in 6 months) $ 48,000 Accounts receivable 120,000 Accounts payable 105,000 Inventory 290,000 Long-term liabilities 360,000 Prepaid expenses 60,000 Capital stock, $5 par 300,000 Plant & equipment (net) 570,000 Retained earnings 436,000 Other assets 90,000 Total $ 1,249,000 Total $ 1,249,000 During the year, the company earned a gross profit of $1,116,000...
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Liabilities & Stockholders' Equity Cash $ 112,000 Notes payable (due in 6 months) $ 47,000 Accounts receivable 120,000 Accounts payable 114,000 Inventory 290,000 Long-term liabilities 362,000 Prepaid expenses 60,000 Capital stock, $5 par 300,000 Plant & equipment (net) 570,000 Retained earnings 419,000 Other assets 90,000 Total $ 1,242,000 Total $ 1,242,000 During the year, the company earned a gross profit of $1,116,000...
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Cash Accounts receivable Inventory Prepaid expenses Plant & equipment (net) Other assets Total 113,000 150,000 290,000 60,000 570,000 90,000 $ 1,273,000 Liabilities & Stockholders' Equity Notes payable (due in 6 months) $ 48,000 Accounts payable 112,000 Long-term liabilities 376,000 Capital stock, $5 par 300,000 Retained earnings 437,000 Total $ 1,273,000 During the year, the company earned a gross profit of $1,116,000 on...
Chi A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Cash Accounts receivable Inventory Prepaid expenses Plant & equipment (net) Other assets Total Liabilities & Stockholders' Equity $ 102,000N otes payable (due in 6 months) $ 49,000 140,000 Accounts payable 102,000 270,000 Long-term liabilities 363,000 60,000 Capital stock, $5 par 300,000 570,000 Retained earnings 418,000 90,000 $1,232,000 Total $ 1,232,000 During the year, the company earned a gross profit of $1,116,000...
How do I figure E. and F.
I have done all of the other parts and they are correct but I can't
get the correct answer on those 2.
Uvutage viewer Google Forms - US Boone County Sign... Columbia Water 8 mework Saved A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Cash Accounts receivable Inventory Prepaid expenses Plant & equipment (net) Other assets Total 111, oee 150, eee 290,000 60,...
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