Partial information from Fabray Company’s balance sheet is as
follows:
Current Assets | Current Liabilities | |||
Cash | $1,200,000 | Notes Payable | $750,000 | |
Marketable Securities | $3,750,000 | Accounts Payable | $9,750,000 | |
Accounts Receivable | $28,800,000 | Accrued Expenses | $6,250,000 | |
Inventories | $33,150,000 | Income Taxes Payable | $250,000 | |
Prepaid Expenses | $600,000 | Total Current Liabilities | $17,000,000 | |
Total Current Assets | $67,500,000 |
What is Fabray’s current ratio?
0.25 |
||
3.0 |
||
1.8 |
||
3.97 |
3.97
Current Ratio = Total Current Assets/Total current liabilities
= (67500000/17000000)
= 3.97
Partial information from Fabray Company’s balance sheet is as follows: Current Assets Current Liabilities Cash $1,200,000...
Current Year Previous Year Current assets: Cash $387,600 $291,200 Marketable securities 448,800 327,600 Accounts and notes receivable (net) 183,600 109,200 Inventories 475,200 348,900 Prepaid expenses 244,800 223,100 Total current assets $1,740,000 $1,300,000 Current liabilities: Accounts and notes payable (short-term) $348,000 $364,000 Accrued liabilities 252,000 156,000 Total current liabilities $600,000 $520,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Please refer to Table 4−1 for the following questions. Stewart Company Balance Sheet Assets: Cash and marketable securities $600,000 Accounts receivable 900,000 Inventories 1,500,000 Prepaid expenses 75,000 Total current assets $3,075,000 Fixed assets 8,000,000 Less: accum. depr. (2,075,000) Net fixed assets $5,925,000 Total assets $9,000,000 Liabilities: Accounts payable $800,000 Notes payable 700,000 Accrued taxes 50,000 Total current liabilities $1,550,000 Longminus−term debt...
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $627,000 $494,000 Marketable securities 726,000 555,800 Accounts and notes receivable (net) 297,000 185,200 Inventories 544,500 277,500 Prepaid expenses 280,500 177,500 Total current assets $2,475,000 $1,690,000 Current liabilities: Accounts and notes payable (short-term) $435,000 $455,000 Accrued liabilities 315,000 195,000 Total current liabilities $750,000 $650,000 a. Determine for each year (1) the...
Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Accounts payable . . . . . . . . . . . . . . . . . . . . . 36 Accounts receivable . . . . . . . . . . . . . . ....
Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $326,750, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of...
Problem 24-01 Focusing on Liquidation - Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $247,000, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how...
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $421,800 $332,800 Marketable securities 488,400 374,400 Accounts and notes receivable (net) 124,800 Inventories 507,500 199,800 732,600 377,400 $2,220,000 Prepaid expenses 324,500 Total current assets $1,664,000 Current liabilities: Accounts and notes payable (short-term) $429,200 $448,000 Accrued liabilities 310,800 192,000 Total current liabilities $740,000 $640,000 a. Determine for each year (1) the...
1) Based on the balance sheet and income statement information given below, calculate the following financial ratios and explain briefly what the number you calculated means: a) Current ratio b) Acid-test ratio c) Days in receivables d) Debt ratio e) Return on equity Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets $600,000 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) $5,925,000 $9,000,000 Liabilities: Accounts payable Notes payable...
1) Based on the balance sheet and income statement information given below, calculate the following financial ratios and explain briefly what the number you calculated means: a) Current ratio b) Acid-test ratio c) Days in receivables d) Debt ratio e) Return on equity Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets $600,000 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) $5,925,000 $9,000,000 Liabilities: Accounts payable Notes payable...
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $433,200 $353,600 Marketable securities 501,600 397,800 Accounts and notes receivable (net) 205,200 132,600 Inventories 752,400 444,100 Prepaid expenses 387,600 283,900 Total current assets $2,280,000 $1,612,000 Current liabilities: Accounts and notes payable (short-term) $348,000 $364,000 Accrued liabilities 252,000 156,000 Total current liabilities $600,000 $520,000 a. Determine for each year (1) the...