Question

Lesson 2: Financial Statements 1) What is the proper sequence for accounts listed in the chart of accounts? Put them in order. Revenue, Assets, Expenses, Equity, Liabilities 9.09 Points Saved 1. Liabilities 2. Revenue 3. Expenses 4. Assets 5. Equity Current Assets $1020834 Total Assets $1867680 Current Liabilities $ 376178 Total Liabilites $527216 Net Income $400019 Net Cash Provided by Operating Activities $464270 Capital Expenditures $250407 Dividends paid on Common Stock $80796 Weighted Avg shares Outstanding $216119 Please use the above information to calculate ratios below.

Answer 1

Answer :

1. Correct sequence for accounts listed in chart of accounts is-

a. Assets

b. Liabilities

c. Equity

d. Revenue

e. Expenses

2. Current ratio :

Current ratio = Current assets / Current liabilities

= $1,020,834 / $376,178

= 2.71

3. Earnings per share :

Earnings per share = Net Income / Weighted average shares outstanding

= $400,019 / $216,119

= $1.85

4. Debt to asset ratio :

Debt to asset ratio = Total liablities / Total assets

= $527,216 / $1,867,680

= 28.23%

5. Free cash flow :

Free cash flow = Net cash provided by operating activities - Capital expenditures

= $464,270 - $250,407

= $213,863

6. Increase

7. Working capital :

Working capital = Current assets - Current liabilities

= $1,020,834 - $376,178

= $644,656