Question

assume the assets are 1500,000, current liabilities are 250,000, inventory is 50,000, total debt is 1200,000and...

assume the assets are 1500,000, current liabilities are 250,000, inventory is 50,000, total debt is 1200,000and total assets are 3,500,000. Compute the liquidity and leverage ratios for this organization. Assume the net sales for the organization are 1750,000. Compute the asset turnover activity ratio. comment 1-2 sentence regarding the health of the organization based upon your computations
0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
assume the assets are 1500,000, current liabilities are 250,000, inventory is 50,000, total debt is 1200,000and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • XYZ Company Debt 725 Total Assets 1365 Inventory 375 Current Assets 900 Current Liabilities 500 Total...

    XYZ Company Debt 725 Total Assets 1365 Inventory 375 Current Assets 900 Current Liabilities 500 Total Equity 1500 Cost of Goods Sold 1150 Sales 1200 Operating Profit 330 Taxes 150 Use the above chart to calculate the following Quick Ratio – (5pts) Current Ratio – (5pts) Inventory Turnover – (5pts) Debt Ratio – (5pts) Total Asset Turnover  – (5pts)

  • J Company has the following information: Total Current Assets $250,000 Total Assets 800,000 Total Current Liabilities...

    J Company has the following information: Total Current Assets $250,000 Total Assets 800,000 Total Current Liabilities 100,000 Total Liabilities 500,000 Net cash provided by operating activities 50,000 Dividends Paid 5,000 Capital Expenditures 30,000 Compute J Company's current ratio. Compute your answer to two decimal places. For example, enter 1 as 1.00 or 2.3 as 2.30 Compute J Company's debt to assets ratio. Enter you answer as a whole percentage. Compute J Company's free cash flow.

  • Liquidity Current ratio 2014 = current assets/current liabilities 204,000/89,000 = 2.292 for 2014 and 230,000/90,000 =...

    Liquidity Current ratio 2014 = current assets/current liabilities 204,000/89,000 = 2.292 for 2014 and 230,000/90,000 = 2.555 for 2015 Quick Ratio = current assets-inventory/current liabilities 204,000-66,000/89000= 1.550 for 2014 and 230,000-75000/90,000 = 1.722 for 2015 Accounts receivable turnover Credit sales/average debts Average debt 75000+82000/2 = 78500 Total sales = 3,199,900/78500 = 40.76 times (2015) Days sales outstanding = average accounts receivable/sales credit 78500/3199900 x 360 = 8.83 days (2015) Inventory turnover 66,000+75,000/2 = 70,500 Inventory turnover ratio = cost of...

  • A firm's long-term assets = $100,000, total assets = $400,000, inventory = $50,000 and current liabilities...

    A firm's long-term assets = $100,000, total assets = $400,000, inventory = $50,000 and current liabilities = $200,000. The industry average current ratio is 2.0 and quick ratio is 1.5. (3 points each) 7.1 What are the firm's current ratio and quick ratio? 7.2 What is the firm's liquidity position? 7.3 What is the firm's net working capital? 7.4 Why is working capital important to a business?

  • Inventory 933,400 Total current assets $ 1,967,860 Long-term debt $ 5,050,000 Fixed assets Owners' equity Net...

    Inventory 933,400 Total current assets $ 1,967,860 Long-term debt $ 5,050,000 Fixed assets Owners' equity Net plant and equipment $15,411,620 Common stock $ 322,500 Retained earnings 9,233,930 Total equity $ 9,556,430 Total assets $17,379,480 Total liabilities and owners' equity $17,379,480 Click here for a description of Table: Mini Case: Tuxedo Air Inc. 2015 Statement of Financial Position. Ught Airplane Industry Ratlos Lower Quartile Medlan Upper Quartile Current ratio 0.50 1.43 1.89 Quick ratio 0.21 0.38 0.62 Cash ratio 0.08 0.21...

  • assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed...

    assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....

  • The following information is available for Marigold Corp. Current assets Total assets Current liabilities Total liabilities...

    The following information is available for Marigold Corp. Current assets Total assets Current liabilities Total liabilities Net income Net cash provided by operating activities Preferred dividends Common dividends Expenditures on property, plant, and equipment 2017 $67,200 250,000 28,000 87,500 109,250 90,000 8,000 3,000 28,000 2016 $ 46,340 215,000 33,100 96,750 49,400 56,000 8,000 1,500 13,000 Shares outstanding at beginning of year Shares outstanding at end of year 50,000 85,000 40,000 50.000 (a) Compute earnings per share for 2017 and 2016...

  • Jarman Company had current and noncurrent liabilities of $50,000 and $160,000, respectively The company's current assets...

    Jarman Company had current and noncurrent liabilities of $50,000 and $160,000, respectively The company's current assets were $76,000, out of a total asset figure of $457,000. Calculate the company's debt ratio. Jarman Company had current and noncurrent liabilities of $50,000 and $160,000, respectively The company's current assets were $76,000, out of a total asset figure of $457,000. Calculate the company's debt ratio.

  • Assets Current assets Cash Accounts receivable Inventory FUT VUUS) 2018 2019 2018 2019 Liabilities and Owners'...

    Assets Current assets Cash Accounts receivable Inventory FUT VUUS) 2018 2019 2018 2019 Liabilities and Owners' Equity Current liabilities $ 100 $ 115 Accounts payable $ 75 $ 105 170 150 Notes payable 100 120 120 120 Total $ 390 $ 385 Total $ 175 $ 225 $ 250 $ 290 Long-term debt Owners' equity Common stock Accumulated retained earnings 122 $ 190 $ 275 Fixed assets 348 Net plant and equipment $ 500 $ 600 Total Equity $ 465...

  • Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current...

    Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current Assets                           Current Liabilities                        = 515800                           626900                      = 0.82 : 1 Quick Ratio = Quick Assets                          Current Liabilities                      = 42700 + 205800                                 626900                      = 0.40 Cash Ratio = Cash & Cash Equivalents                       Current Liabilities                   = 42700                      626900                  = 0.0681 : 1    2. Turnover / Activity Ratios Inventory Turnover = COGS                              Average Inventories...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT