Homework Answers
Current ratio = Current assets / Current liabilities
Current assets = Cash + Account receivable + Inventory
= 60000 + 10000 + 40000
= 110000
Current liabilities = Accounts payable + Payroll liabilities payable + Current long term debt
= 30000 + 5000 + 10000
= 45000
Current ratio = Current assets / Current liabilities
= 110000 / 45000
= 2.44
Gross working capital = Current assets - Current liabilities
= 110000 - 45000
= 65000
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Problem 3: Using the balance sheet below, calculate current ratio and gross working capital. Balance Sheet...
Calculate Working Capital for last year PETE'S POTATO & PASTA, INC. BALANCE SHEET ENDING DECEMBER 31st...
Calculate Working Capital for last
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 LIABILITIES...
Prepare a balance sheet from the following information. What is the net working capital and debt...
Prepare a balance sheet from the following information. What is
the net working capital and debt ratio?
3-3. (Preparing a balance sheet) Prepare a balance sheet from the following information. What is the net working capital and debt ratio? Cash $ 50,000 Accounts receivable 42,700 Accounts payable 23,000 Short-term notes payable 10,500 Inventories 40,000 Gross fixed assets 1,280,000 Other current assets 5,000 Long-term debt 200,000 Common stock 490,000 Other assets 15,000 Accumulated depreciation 312,000 Retained earnings 3-4. (Preparing a balance...
1. Based on the following data, what is the amount of working capital? Accounts payable....................$32,000 Accounts...
1. Based on the following data, what is the amount of working capital? Accounts payable....................$32,000 Accounts receivable....................64,000 Accrued liabilities....................7,000 Cash.........................................20,000 Intangible assets............................40,000 Inventory...............................................72,000 Long-term investments...............................100,000 Long-term liabilities.....................................75,000 Marketable securities.................................35,000 Notes payable (short-term)........................20,000 Property, plant, and equipment.................625,000 Prepaid expenses.........................................2,000 WHAT IS WORKING CAPITAL? a. $162,000 b. $134,000 c. $193,000 d. $62,000 2. Use the following data to determine the total dollar amount of assets to be classified as current assets. Cash..............................................$60,000 Prepaid insurance..........................40,000 Accounts receivable......................50,000 Inventory.........................................70,000 Land held for investment................80,000 Land................................................95,000...
Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the Accounts payable...
Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the Accounts payable Cash Land Pearson, Capital $ 5,000 40,000 25,000 30,000 Accounts receivable Gomez, Capital Long-term notes payable Litt, Capital $10,000 15,000 20,000 5,000 Prepare a classified balance sheet. PEARSON, GOMEZ, AND LITT PARTNERSHIP Balance Sheet December 31 Assets Current assets Cash $ 40,000 10,000 Accounts receivable 50,000 Total current assets Plant assets Land 25,000 $ 75,000 Total assets Liabilities $ 5,000 20,000 Current liabilities Account...
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...
THE ANSWER IS NOT COMPLETE I DONT KNOW WHY (I DARE TO KNOW THE REASON ;) Problem 3-3 Balance sheet preparation [LO3-2, 3...
THE ANSWER IS NOT COMPLETE I DONT KNOW WHY (I DARE TO KNOW THE
REASON ;)
Problem 3-3 Balance sheet preparation [LO3-2, 3-3]
The following is a December 31, 2018, post-closing trial balance
for Almway Corporation.
Account Title
Debits
Credits
Cash
$
45,000
Investments
110,000
Accounts receivable
60,000
Inventories
200,000
Prepaid insurance (for the next 9 months)
9,000
Land
90,000
Buildings
420,000
Accumulated depreciation—buildings
$
100,000
Equipment
110,000
Accumulated depreciation—equipment
60,000
Patents (net of amortization)
10,000
Accounts payable
75,000
Notes...
Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the year ended...
Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the year ended Accounts payable Cash Land Pearson, Capital $ 5,000 40,000 25,000 30,000 Accounts receivable Gomez, Capital Long-term notes payable Litt, Capital $10,000 15,000 20,000 5,000 Prepare a classified balance sheet. PEARSON, GOMEZ, AND LITT PARTNERSHIP Balance Sheet December 31 Assets Current assets Total current assets Plant assets Total assets Liabilities Current liabilities Long-term liabilities Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial...
QUESTION 30 Use the balance sheet below to calculate the company's Net Working Capital (Current Assets...
QUESTION 30 Use the balance sheet below to calculate the company's Net Working Capital (Current Assets - Current Liabilities) Tucker & Assodates Current Assets Niet plant and equipment 900.000 1,500,000 Accounts payable and accruals Notes payable Current liabilities Long term debt Total common equity Total liabilities and equity 5,000 200,000 275.000 500.000 125.000 2.000.000 Total Assets 2,000,000 500.000 250.000 225.000 275,000
Did the Current Ratio increase or decrease from last year to this year? PETE'S POTATO &...
Did the Current Ratio increase or decrease from
last year to this year?
PETE'S POTATO & PASTA, INC BALANCE SHEET ENDING DECEMBER 31st This year Last year ASSETS 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 mach inery Less depreciation 20,000 -12,000 -10,000 8,000 2,000 88,000 20,000 Land 8,000 1,500 Intangible Assets TOTAL ASSETS 79,500 LIABILITIES and SHAREHOLDERS' EQUITY Liabilities 20,000 15,500 Accounts payable...
Calculate operating cash flow, change in net working capital, net capital spending, cash flow to creditors...
Calculate operating cash flow, change in net working capital,
net capital spending, cash flow to creditors and cash flow to
stockholders. Does the cash flow identity hold?
Balance Sheet 2017 2018 Assets Current assets Cash $5,000 $6,500 Accounts receivable $31,500 30,000 $42,000 Inventory 40,000 Total $75,000 $80,000 Fixed assets Net plant and equipment $393,750 375,000 $450,000 Total assets $473,750 Liabilities and Owners Equity Current liabilities Accounts payable $50,000 $53,750 Notes payable 25,000 $26,250 Total $75,000 $80,000 Long-term debt Owners' equity...
Calculate Working Capital for last
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 LIABILITIES...
Prepare a balance sheet from the following information. What is
the net working capital and debt ratio?
3-3. (Preparing a balance sheet) Prepare a balance sheet from the following information. What is the net working capital and debt ratio? Cash $ 50,000 Accounts receivable 42,700 Accounts payable 23,000 Short-term notes payable 10,500 Inventories 40,000 Gross fixed assets 1,280,000 Other current assets 5,000 Long-term debt 200,000 Common stock 490,000 Other assets 15,000 Accumulated depreciation 312,000 Retained earnings 3-4. (Preparing a balance...
Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the Accounts payable Cash Land Pearson, Capital $ 5,000 40,000 25,000 30,000 Accounts receivable Gomez, Capital Long-term notes payable Litt, Capital $10,000 15,000 20,000 5,000 Prepare a classified balance sheet. PEARSON, GOMEZ, AND LITT PARTNERSHIP Balance Sheet December 31 Assets Current assets Cash $ 40,000 10,000 Accounts receivable 50,000 Total current assets Plant assets Land 25,000 $ 75,000 Total assets Liabilities $ 5,000 20,000 Current liabilities Account...
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...
THE ANSWER IS NOT COMPLETE I DONT KNOW WHY (I DARE TO KNOW THE
REASON ;)
Problem 3-3 Balance sheet preparation [LO3-2, 3-3]
The following is a December 31, 2018, post-closing trial balance
for Almway Corporation.
Account Title
Debits
Credits
Cash
$
45,000
Investments
110,000
Accounts receivable
60,000
Inventories
200,000
Prepaid insurance (for the next 9 months)
9,000
Land
90,000
Buildings
420,000
Accumulated depreciation—buildings
$
100,000
Equipment
110,000
Accumulated depreciation—equipment
60,000
Patents (net of amortization)
10,000
Accounts payable
75,000
Notes...
Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the year ended Accounts payable Cash Land Pearson, Capital $ 5,000 40,000 25,000 30,000 Accounts receivable Gomez, Capital Long-term notes payable Litt, Capital $10,000 15,000 20,000 5,000 Prepare a classified balance sheet. PEARSON, GOMEZ, AND LITT PARTNERSHIP Balance Sheet December 31 Assets Current assets Total current assets Plant assets Total assets Liabilities Current liabilities Long-term liabilities Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial...
QUESTION 30 Use the balance sheet below to calculate the company's Net Working Capital (Current Assets - Current Liabilities) Tucker & Assodates Current Assets Niet plant and equipment 900.000 1,500,000 Accounts payable and accruals Notes payable Current liabilities Long term debt Total common equity Total liabilities and equity 5,000 200,000 275.000 500.000 125.000 2.000.000 Total Assets 2,000,000 500.000 250.000 225.000 275,000
Did the Current Ratio increase or decrease from
last year to this year?
PETE'S POTATO & PASTA, INC BALANCE SHEET ENDING DECEMBER 31st This year Last year ASSETS 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 mach inery Less depreciation 20,000 -12,000 -10,000 8,000 2,000 88,000 20,000 Land 8,000 1,500 Intangible Assets TOTAL ASSETS 79,500 LIABILITIES and SHAREHOLDERS' EQUITY Liabilities 20,000 15,500 Accounts payable...
Calculate operating cash flow, change in net working capital,
net capital spending, cash flow to creditors and cash flow to
stockholders. Does the cash flow identity hold?
Balance Sheet 2017 2018 Assets Current assets Cash $5,000 $6,500 Accounts receivable $31,500 30,000 $42,000 Inventory 40,000 Total $75,000 $80,000 Fixed assets Net plant and equipment $393,750 375,000 $450,000 Total assets $473,750 Liabilities and Owners Equity Current liabilities Accounts payable $50,000 $53,750 Notes payable 25,000 $26,250 Total $75,000 $80,000 Long-term debt Owners' equity...
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