SINGER COMPANY | |||
BALANCE SHEET | |||
DECEMBER 31, 2010 | |||
Assets | |||
Current assets: | |||
Cash | $ 60,790.00 | ||
Marketable securities | $ 15,000.00 | ||
Accounts receivable | $ 26,700.00 | ||
Merchandise inventory | $112,900.00 | ||
Prepaid rent | $ 3,600.00 | ||
Office supplies | $ 400.00 | ||
Total current assets | $219,390.00 | ||
Property, plant, and equipment: | |||
Land | $250,000.00 | ||
Buildings | $150,000.00 | ||
Less: Accumulated depreciation | $ 40,000.00 | $110,000.00 | |
Equipment | $ 84,500.00 | ||
Less: Accumulated depreciation | $ 12,500.00 | $ 72,000.00 | |
Total property, plant, and equipment | $432,000.00 | ||
Intangible assets: | |||
Patents | $ 45,000.00 | ||
Total assets | $696,390.00 | ||
Liabilities | |||
Current liabilities: | |||
Accounts payable | $ 34,280.00 | ||
Income taxes payable | $ 7,500.00 | ||
Interest payable | $ 2,200.00 | ||
Notes payable, due April 15, 2011 | $ 6,500.00 | ||
Salaries payable | $ 7,400.00 | ||
Total current liabilities | $ 57,880.00 | ||
Long-term debt: | |||
Bonds payable, due December 31, 2016 | $250,000.00 | ||
Total liabilities | $307,880.00 | ||
Stockholders’ Equity | |||
Contributed capital: | |||
Capital stock, $1 par value, 200,000 | |||
shares issued and outstanding | $200,000.00 | ||
Paid-in capital in excess of par value | $ 75,000.00 | ||
Total contributed capital | $275,000.00 | ||
Retained earnings | $113,510.00 | ||
Total stockholders’ equity | $388,510.00 | ||
Total liabilities and stockholders’ equity | $696,390.00 | ||
2. Compute Singer’s current ratio. | |||
(Round answers to 2 decimal places) | |||
Current Ratio = 219390/57880 | 219390 | 3.79 | |
57880 |
From the current ratio alone, Singer appears to be relatively liquid. In fact, Singer may be too liquid, in that its cash balance is greater than its total current liabilities. Singer may be missing significant investment opportunities by maintaining such a large cash balance. To fully assess its liquidity, it would be useful to look more specifically at the activity in accounts receivable and merchandise inventory. How long does it take to collect an account receivable? How long does it take to sell inventory? Also, you would want to compare Singer’s current ratio at the end of this period with prior periods, and with the current ratio for companies in the same industry.
General Instructions 1. The following worksheet may be used to complete the exercise/problem. You may need...
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The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2017: Accounts payable $18,155 Income taxes payable $6,550 Accounts receivable 23,605 Interest payable 1,600 Accumulated depreciation - automobiles 23,490 Inventory 41,980 Accumulated depreciation - buildings 39,950 Land 246,000 Automobiles 117,450 Long-term investments 88,955 Bonds payable, due December 31, 2021 167,000 Notes payable, due June 30, 2018 9,000 Buildings 199,750 Office supplies 2,455 Capital stock, $10 par value 153,000 Paid-in capital...
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all three pages please! thank you! TAMARISK, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets Property, plant, and equipment (net) $9,630 $8,790 2,020 1.860 1,540 1.780 $13,190 $12.430 Other assets Total assets Liabilities and Stockholders' Equity Current Liabilities $3.290 1,310 $3,400 1.350 Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity 8.590 7.680 $13,190 $12.430 TAMARISK, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Increase (Decrease) Percentage Change from 2013 Assets...
Income taxes payable $19,960 24,290 Interest payable Accounts payable Accounts receivable Accumulated depreciation - automobiles Accumulated depreciation - buildings $6,530 1,455 48,740 24,320 Inventory Land 240,000 Automobiles 81,525 11,000 38,190 121,600 161,000 190,950 158,000 13,000 Bonds payable, due December 31, 2021 Buildings Capital stock, $10 par value Cash Long-term investments Notes payable, due June 30, 2018 Office supplies Paid-in capital in excess of par value 2,280 47,000 Patents 43,000 Prepaid rent 1,460 Retained earnings 295,445 Salaries and wages payable 3,945...
Exercise 13-5 Your answer is partially correct. Try again. Suppose the comparative balance sheets of Marin Inc. are presented here. MARIN INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,730 $8,880 Property, plant, and equipment (net) 1,870 1,840 Other assets 1,470 1,780 Total assets $13,070 $12,500 Liabilities and Stockholders' Equity Current Liabilities $3,160 $3,330 Long-term liabilities 1,330 1,370 Stockholders’ equity 8,580 7,800 Total liabilities and stockholders' equity $13,070 $12,500 (a) Prepare a horizontal analysis...
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Exercise 15-17 Metlock Corporation’s post-closing trial balance at December 31, 2020, is shown as follows. METLOCK CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2020 Dr. Cr. Accounts payable $ 307,700 Accounts receivable $ 492,000 Accumulated depreciation—buildings 189,000 Additional paid-in capital in excess of par—common 1,386,000 From treasury stock 161,000 Allowance for doubtful accounts 29,000 Bonds payable 319,000 Buildings 1,496,000 Cash 188,000 Common stock ($1 par) 202,000 Dividends payable (preferred stock—cash) 4,300 Inventory 609,000 Land 380,000 Preferred stock ($50 par) 450,000 Prepaid...