Ans(a-1): Computation of working capital are as follow:
The formula to calculate working capital are as follow:
Working Capital = Current Assets - Current Liabilities
The values given in the question are:
using the values given,
Working Capital of S = $210,000 - $105,000 = $105,000
Working Capital of N = $250,000 - $100,000 = $150,000
Ans(a-2): Computation of Current Ratio are as follow:
Formula to calculate current ratio are:
the values given in the question are:
using the values given,
Current ratio of S = ($210,000/$105,000) =$2
Current Ratio of N = ($250,000/$100,000)=$2.5
Ans(a-3): Computation of Acid-test ratio are as follow:
The formula to calculate Acid-test ratio are:
The values given in the question are:
using the values given,
Acid-test ratio of S = ($210,000-$84,000)/$105,000 = $1.20
Acid-test ratio of N = ($250,000-$160,000)/$100,000 = $0.90
Ans(a-4): Computation of Inventories turnover and days in inventories are as follow:
The formula to calculate inventory turnover ratio is:
the values given in the question are:
using the values given,
Inventory turnover ratio of S = ($504,000/$84,000) = 6 times
Inventory turnover ratio of N = ($480,000/$160,000) = 3 times
The formula to calculate inventory turnover in days is:
using the values given in the question,
Inventory turnover in days S = ($84,000/$504,000) x 365 days = 61 Days
Inventory turnover in days N = ($160,000/$480,000) x 365 days = 122 Days
Question The selected financial data for Sand N Companies are presented at the end of December...
Ratio Question The selected financial data for Sand N Companies are presented at the end of December 2011 Net credit sales Cost of goods sold Cash Accounts receivable, et Inventory Current liabilities SRMO 675,000 504,000 51.000 75,000 34,000 105,000 NEMO 560,000 480,000 20,000 70,000 160,000 100,000 proximate the Assume that the year-end balance shown for accounts receivable and for inventory average balances of the items through the year Required: 1. For each of the companies, compute the following 1. Working...
Question 1 Shown below are selected financial data for AB and XY Limited at the end of the current year AB Ltd XY Ltd Net credit sales $675,000 $560,000 Cost of goods sold 504,000 480,000 Cash 51,000 20,000 Accounts receivable 75,000 70,000 Inventory 84,000 160,000 Current liabilities 105,000 100,000 Required: a) For each of the two companies, compute the following 1. Working capital 2. Current ratio 3. Quick ratio 4. Inventory turnover ratio and average number of days required to...
please help solving the all the questions from question1a b to question2 a b. Please give a detailed explanation. Thank you! Question 1 Shown below are selected financial data for AB and XY Limited at the end of the current year: AB Ltd XY Ltd Net credit sales $675,000 $560,000 Cost of goods sold 504,000 480,000 Cash 51,000 20,000 Accounts receivable 75,000 70,000 Inventory 84,000 160,000 Current liabilities 105,000 100,000 Required: a) For each of the two companies, compute the...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 64,600 Interest expense 7,900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,800 24,300 Prepaid expenses 5,000 6,950 Net income 162,200...
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. End of Year Beginning of Year Cash and cash equivalents $790 $67 Accounts receivable (net) 2,000 1,850 Inventory 890 900 Other current assets 290 333 Total current assets $3,970 $3,150 Total current liabilities $2,050 $1,600 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251...
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 760 $ 77 Accounts receivable (net) 2,080 1,890 Inventory 810 890 Other current assets 730 363 Total current assets $4,380 $3,220 Total current liabilities $2,000 $1,610 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities...
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 1,441 $ 137 Accounts receivable (net) 3,900 3,700 Inventory 1,700 1,700 Other current assets 619 576 Total current assets $7,660 $6,113 Total current liabilities $3,830 $3,042 For the year, net credit sales were $15,580 million, cost of goods sold was $10,200 million, and net cash provided by operating activities...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2020 Accounts payable Interest payable Sales Sales discounts Cost of goods sold $ 33,985 46,009 7,800 34,000 2,180 1. 240 41.800 21,800 18,000 30,920 180 521,500 1,500 322.695 Accounts Receivable at December 31, 2018, was $56,800....
Exercise 18-07 Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. Cash and cash equivalents Accounts receivable (net) Inventory Other current assets Total current assets Total current liabilities End of Year $ 1,289 3,600 1,600 571 $7,060 $3,530 Beginning of Year $ 126 3,400 1,600 531 $5,657 $2,802 For the year, net credit sales were $14,350 million, cost of goods sold was $9,280 million, and net cash provided by...
Check my work Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,000 $ 35,000 Accounts receivable, net 35, 400 53,400 Current notes receivable (trade) 9.500 8.400 Merchandise inventory 34,740 136,500 Prepaid expenses 5,700 7150 Plant assets, net 290,000 308,400 Total assets $445, 340 $548.850 Barco Kyan Company Company Data from the current year's income statement Sales $750,000 $878, 200...