Homework Answers
Current assets = ( Accounts receivable - AFDA) + Inventory
= (2,200-110)+3,200
= $5,290
Current liabilities = Accounts payable + Accrued expenses
= 1,600+800
= 2,400
Current ratio = Current assets / Current liabilities
= 5,290/2,400
= 2.20
Other information given in the question is not relevant for calculation current ratio and hence ignored.
Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.
Thanks!!!
Add Answer to:
Problem #6 (8): The following items are taken from the year-end general ledger accounts of RAVENNA,...
The following items are taken from the year-end general ledger accounts of RAVENNA, Inc. The bonds...
The following items are taken from the year-end general ledger accounts of RAVENNA, Inc. The bonds were issued by First Medici and carried a 10.0% coupon, payable annually on Mar 31. The lending indenture includes an acceleration clause triggered wen the year-end current ratio is less than 2.0. The patent was acquired in the current year and there were $150 in writeoffs in November. (CPA adapted) Bonds Payable (Principal due 6/30/2030) 5,000 Accounts Payable 1,600 AFDA 110 Accrued Expenses 800...
The following items are taken from the year-end general ledger accounts of RAVENNA, Inc. The bonds...
The following items are taken from the year-end general ledger accounts of RAVENNA, Inc. The bonds were issued by First Medici and carried a 10.0% coupon, payable annually on Mar 31. The lending indenture includes an acceleration clause triggered wen the year-end current ratio is less than 2.0. The patent was acquired in the current year and there were $150 in writeoffs in November. (CPA adapted) Bonds Payable (Principal due 6/30/2030) 5,000 Accounts Payable 1,600 AFDA 110 Accrued Expenses 800...
12 Current Position Analysis The bond indenture for the 10-year, 8% debenture bonds dated January 2,...
12
Current Position Analysis The bond indenture for the 10-year, 8% debenture bonds dated January 2, 2048, required working capital of $200,000, a current ratio of 2.0, and a quick ratio of 1.0 at the end of each calendar year until the bonds mature. At December 31, 2089, the three measures were computed as follows: 1. Current assets: Cash $222,000 Temporary investments 277,500 Accounts receivable (net) 444,000 Inventories 351,500 Prepaid expenses 92,500 Intangible assets 55,500 Property, plant, and equipment 999,000...
Grant Co. had the following liabilities at December 31, the end of its fiscal year: Accounts...
Grant Co. had the following liabilities at December 31, the end of its fiscal year: Accounts Payable $56,000 Salaries Payable 12,200 Unearned Fees 8,900 Income Taxes Payable 3,200 Notes Payable 240,000 The note payable is an 8-year note with $30,000 due in the next year. Prepare the liabilities section of the balance sheet for the company. Grant Co. Balance Sheet December 31 Current liabilities: Total current liabilities: Long-term liabilities: Total liabilities Grant Co. had the following liabilities at December 31,...
2. The following data are taken from the sheet at the end of the current year:...
2. The following data are taken from the sheet at the end of the current year: Cash Trading Investments Accrued Liabilitics Notes Payable, long-term Prepaid Insurance Accounts Payable 525,000 106,000 515,000 90,000 95,000 348,000 1,459,000 89,000 105,000 500,000 Accounts Receivable Salaries Payable Intangible Assets Property, Plant and Equipment Interpretation-what does the result mean? Compute: a. Working capital: b. Current ratio: c. Acid-test ratio: d. Consider the additional information for the above analysis: Current ratio, prior year: 1.8 Industry average: 2.1...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $480,300 $386,400 Marketable securities 556,200 434,700 Accounts and notes receivable (net) 227,500 144,900 Inventories 730,000 420,900 Prepaid expenses 376,000 269,100 Total current assets $2,370,000 $1,656,000 Current liabilities: Accounts and notes payable (short-term) $458,200 $483,000 Accrued liabilities 331,800 207,000 Total current liabilities $790,000 $690,000 a. Determine for each year (1) the working capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $563,200 $435,200 Marketable securities 489,600 652,100 266,700 Accounts and notes receivable (net) 163,200 Inventories 463,300 290,400 185,600 Prepaid expenses 238,700 Total current assets $2,184,000 $1,564,000 Current liabilities: Accounts and notes payable (short-term) $452,400 327,600 $476,000 204,000 Accrued liabilities Total current liabilities $780,000 $680,000 a. Determine for each year (1) the working capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $396,700 $320,000 Marketable securities 459,400 360,000 Accounts and notes receivable (net) 187,900 120,000 Inventories 382,800 244,000 Prepaid expenses 197,200 156,000 Total current assets $1,624,000 $1,200,000 Current liabilities: Accounts and notes payable (short-term) $336,400 $350,000 Accrued liabilities 243,600 150,000 Total current liabilities $580,000 $500,000 a. Determine for each year (1) the working capital, (2)...
he following data were taken from the balance sheet of Nilo Company at the end of...
he following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $524,400 $436,800 Marketable securities 607,200 491,400 Accounts and notes receivable (net) 248,400 163,800 Inventories 316,800 95,200 Prepaid expenses 163,200 60,800 Total current assets $1,860,000 $1,248,000 Current liabilities: Accounts and notes payable (short-term) $348,000 $364,000 Accrued liabilities 252,000 156,000 Total current liabilities $600,000 $520,000 a. Determine for each year (1) the working capital, (2)...
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of ACME Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
25,100
Accounts Receivable
46,200
Allowance for Uncollectible Accounts
$
4,200
Inventory
20,000
Land
46,000
Equipment
15,000
Accumulated Depreciation
1,500
Accounts Payable
28,500
Notes Payable (6%, due April 1, 2022)
50,000
Common Stock
35,000
Retained Earnings
33,100
Totals
$
152,300
$
152,300
During January 2021, the following transactions occur:
January
2
Sold gift cards totaling $8,000. The cards are redeemable for...
12
Current Position Analysis The bond indenture for the 10-year, 8% debenture bonds dated January 2, 2048, required working capital of $200,000, a current ratio of 2.0, and a quick ratio of 1.0 at the end of each calendar year until the bonds mature. At December 31, 2089, the three measures were computed as follows: 1. Current assets: Cash $222,000 Temporary investments 277,500 Accounts receivable (net) 444,000 Inventories 351,500 Prepaid expenses 92,500 Intangible assets 55,500 Property, plant, and equipment 999,000...
Grant Co. had the following liabilities at December 31, the end of its fiscal year: Accounts Payable $56,000 Salaries Payable 12,200 Unearned Fees 8,900 Income Taxes Payable 3,200 Notes Payable 240,000 The note payable is an 8-year note with $30,000 due in the next year. Prepare the liabilities section of the balance sheet for the company. Grant Co. Balance Sheet December 31 Current liabilities: Total current liabilities: Long-term liabilities: Total liabilities Grant Co. had the following liabilities at December 31,...
2. The following data are taken from the sheet at the end of the current year: Cash Trading Investments Accrued Liabilitics Notes Payable, long-term Prepaid Insurance Accounts Payable 525,000 106,000 515,000 90,000 95,000 348,000 1,459,000 89,000 105,000 500,000 Accounts Receivable Salaries Payable Intangible Assets Property, Plant and Equipment Interpretation-what does the result mean? Compute: a. Working capital: b. Current ratio: c. Acid-test ratio: d. Consider the additional information for the above analysis: Current ratio, prior year: 1.8 Industry average: 2.1...
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $563,200 $435,200 Marketable securities 489,600 652,100 266,700 Accounts and notes receivable (net) 163,200 Inventories 463,300 290,400 185,600 Prepaid expenses 238,700 Total current assets $2,184,000 $1,564,000 Current liabilities: Accounts and notes payable (short-term) $452,400 327,600 $476,000 204,000 Accrued liabilities Total current liabilities $780,000 $680,000 a. Determine for each year (1) the working capital, (2)...
On January 1, 2021, the general ledger of ACME Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
25,100
Accounts Receivable
46,200
Allowance for Uncollectible Accounts
$
4,200
Inventory
20,000
Land
46,000
Equipment
15,000
Accumulated Depreciation
1,500
Accounts Payable
28,500
Notes Payable (6%, due April 1, 2022)
50,000
Common Stock
35,000
Retained Earnings
33,100
Totals
$
152,300
$
152,300
During January 2021, the following transactions occur:
January
2
Sold gift cards totaling $8,000. The cards are redeemable for...
Most questions answered within 3 hours.
-
Under the influence of its drive force, a snowmobile is moving
at a constant velocity along...
asked 6 minutes ago -
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 1 hour ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 2 hours ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 3 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 4 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 6 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 6 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 6 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 6 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 6 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 6 hours ago -
The cliché we use quite a lot in finance is: there is a need to
maximize...
asked 6 hours ago